Determinants of Costs and Prices for Electricity Supply in Slovenia

Drago Papler and Štefan Bojnec ()

Eastern European Economics, 2012, vol. 50, issue 1, 65-77

Abstract: This paper analyzes determinants of costs and real prices for retail electricity supply in Slovenia. We estimate cost and price functions in a retail electricity distribution enterprise in Slovenia by ordinary least square regressions on time series data. We confirm the hypotheses that real costs for electricity supply are positively and significantly associated with the costs for purchases of electric energy from electricity producers/wholesalers and with remuneration costs in electricity distribution enterprises. We did not confirm a negative association between the real costs for retail electricity supply and the proxy variable for electricity market liberalization. Market deregulation and price liberalization with increased competition have caused an initial decline in real consumer prices of electric energy. We found that the real consumer price of electric energy is positively associated with producer/wholesaler prices of electric energy, real wages in electricity distribution enterprises, and real tax expenses in the distribution enterprise, but negatively associated with the variable for electricity market liberalization. The results confirm the crucial role of the transmission of producer/wholesaler prices of electric energy and costs within the distribution enterprises, including labor costs, on the consumer prices of electric energy.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=M90205767633676R (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:eaeuec:v:50:y:2012:i:1:p:65-77

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MEEE20

Access Statistics for this article

More articles in Eastern European Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().