Irish and British Historical Electricity Prices and Implications for the Future

Paul Deane, John Fitzgerald (), Laura Malaguzzi Valeri, Aidan Tuohy and Darragh Walsh

No WP452, Papers from Economic and Social Research Institute (ESRI)

Abstract: This paper compares retail and wholesale electricity prices in SEM, the market of the island of Ireland, and BETTA in Great Britain. Wholesale costs are much lower in BETTA. We show that this is mostly because the wholesale price in BETTA is set too low to cover generation costs, although it is compensated by large retail margins. The substantial need for new investment in generation in Great Britain suggests that returns to generators will have to increase. Developing a market mechanism to compensate generators fairly while simultaneously reducing retail revenue will help in achieving this goal.

Keywords: SEM/BETTA/electricity; prices/simulation; model (search for similar items in EconPapers)
JEL-codes: C63 L94 L98 (search for similar items in EconPapers)
Date: 2013-04
New Economics Papers: this item is included in nep-ene and nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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