The wholesale market for electricity in England and Wales : recent developments and future reforms
Name
2000-007.pdf
Size
1.39 MB
Format
Adobe PDF
Checksum (MD5)
8d08815fa4ba0138651a5661f928d346
Author(s)
Sweeting, Andrew
Date Issued
2000
Publisher
MIT Center for Energy and Environmental Policy Research
Series/Report no.
MIT-CEEPR (Series) ; 00-007WP.
Abstract
The England and Wales wholesale electricity market is about to undergo major reform (NETA). I describe and analyse the proposed arrangements, contrasting them with those currently in operation. I argue that while NETA will remove one or two of the Pool's problems, particularly by eliminating capacity payments, there is no reason to expect that it will significantly improve outcomes. Market power could continue to be a problem and, despite NETA's attempt to decentralise the market, the complex rules of the centralised phase operating close to real time are likely determine the level of wholesale electricity prices. Future arrangements for transmission are also considered. I argue that, if generators have local market power, these may exacerbate rather than reduce current problems.
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