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Article: Competition & Trade Practices: Measuring Market Power in a Power Pool?
- Article from:
- Mondaq Business Briefing
- Article date:
- August 3, 2006
- Author:
CopyrightCOPYRIGHT 2006 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Wholesale power pools present a number of complex challenges for regulators. Foremost amongst these challenges is the need to identify both the existence and use of market power. To this end, this paper considers the merits of several different approaches to analysing market power in a power pool.
An international survey of power market regulators in 2004 found the identification and mitigation of the effects of market power to be the highest priority in their development of economic models1. High concentration of ownership in electricity generation, and the potential for that concentration to increase further through mergers, suggests that this issue will remain ...