This paper explores the relationship between domestic retail electricity prices in Great Britain and their determinants in the context of the New Electricity Trading Arrangements (NETA) introduced in 2001. We employ a consistent comparison of wholesale power price series before and after NETA, alongside a difference-in-differences analysis based on using Scotland as a control. Despite NETA’s stated intention of reducing wholesale and thereby retail prices, we conclude that its net effect, alongside other developments, instead merely rearranged where money was made in the system.

Price transmission in the UK electricity market: Was NETA beneficial?

GROSSI, Luigi;
2010

Abstract

This paper explores the relationship between domestic retail electricity prices in Great Britain and their determinants in the context of the New Electricity Trading Arrangements (NETA) introduced in 2001. We employ a consistent comparison of wholesale power price series before and after NETA, alongside a difference-in-differences analysis based on using Scotland as a control. Despite NETA’s stated intention of reducing wholesale and thereby retail prices, we conclude that its net effect, alongside other developments, instead merely rearranged where money was made in the system.
Electricity generation Electricity supply Retail pricing Futures markets Energy market competition
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11562/340513
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