Competition in the British Electricity Spot Market

Richard Green and David M Newbery

No 557, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The British electricity supply industry has, with the exception of Nuclear Electric, now been privatized. Bulk supplies of electricity are traded between two dominant generators and many suppliers in an unregulated `pool'. The generators submit a supply schedule of prices for each generating set and receive the market clearing price, which varies with demand over time. It has been claimed that such Bertrand competition should be highly competitive, bit we show that the Nash equilibrium in supply schedules implies a high mark-up on marginal cost and very substantial deadweight losses.

Keywords: Bertrand Competition; Electricity Supply; Supply Functions (search for similar items in EconPapers)
Date: 1991-05
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=557 (application/pdf)

Related works:
Journal Article: Competition in the British Electricity Spot Market (1992)
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:cpr:ceprdp:557

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=557

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().