How Distortion on the Electric Power Market Can Lead to Stagflation

France Krizanic, Joze Mencinger and Zan Oplotnik
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France Krizanic: EIPF d.o.o. Economic institute -Pre ernova c. 21- SI 1000, Ljubljana, Slovenia,
Joze Mencinger: EIPF d.o.o. Economic institute -Pre ernova c. 21- SI 1000, Ljubljana, Slovenia,
Zan Oplotnik: Faculty of Economics and Business, University of Maribor, Razlagova 14 SI 2000 Maribor, Slovenia

International Journal of Energy Economics and Policy, 2019, vol. 9, issue 1, 26-30

Abstract: At the time of the possible closure of the significant Slovenian classical electricity production in the o tanj Thermal Power Plant and related Velenje Coal Mine, as well as the termination of the subsidies of cost-inefficient electric power production in EU member states, electricity prices in Slovenia for one third of its supply would rise to a level set to cover the cost of its production with a conventional gas-steam turbine. Calculated for the price of electricity produced in the o tanj Thermal Power Plant, this means an average price increase of 39 /MWh. Higher prices of electricity would affect the performance and capacity of the Slovenian economy while bringing a reduction to real household income along with annual drops in Slovenian GDP of 0.4%, Slovenia would stand to lose around 2,700 jobs, and the consumer price level would rise by 0.4%.

Keywords: Electricity Power Market; Electricity Supply and Demand; Energy and the Economy (search for similar items in EconPapers)
JEL-codes: D40 L94 Q3 Q43 (search for similar items in EconPapers)
Date: 2019
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