Price dispersion in Australian retail electricity markets

Price Discrimination in Retail Markets

The hypothesis that price discrimination exploiting the consumer's willingness to pay for quality can occur in multi-firm industries is confirmed using microdata on retail gasoline prices. A test based on the price differentials at stations providing only one service quality (full or self service) and stations providing both qualities is developed and implemented with controls for variations in...

Dynamic pricing of electricity in retail markets

This paper aims at defining a dynamic and flexible tariff structure for a distribution company that protects the retail consumers against the excessive fluctuations of the wholesales market prices. We propose a two-stage pricing scheme that sets in a first-stage a time-of-use tariff that is corrected later by a dynamic component once the real-time demand has been observed. A personalized tariff...

Single Clearing PriCe in eleCtriCity MarketS

Understanding Price Volatility in Electricity Markets

This paper illustrates notions of volatility associated with power systems spot prices for electricity. The paper demonstrates a frequency-domain method useful to separate out periodic price variations from random variations. It then uses actual observed price data to estimate parameters such as volatility and the coefficient of mean reversion associated with the random variation of prices. It ...

Price discovery in restructured electricity markets

We empirically investigate the degree of integration that existed prior to the cost increases that caused emergency conditions in the Western Systems Coordinating Council (WSCC), particularly California, during the summer of 2000. Evidence from Granger causality tests and common features analysis over the period from December 1994 to September 1999 indicates a moderate degree of integration amo...