Transparency in Electricity Markets

Nils-Henrik von der Fehr

No 13/2013, Memorandum from Oslo University, Department of Economics

Abstract: The European Commission is introducing new regulations on submission and publication of data in electricity markets (SPDEM) and on wholesale energy market integrity and transparency (REMIT). I discuss issues relevant for undertaking an evaluation such regulations. I argue that, for market performance, more information is not always better; indeed, more information may undermine market performance by facilitating behaviour that is either not cost efficient or aims at exercising market power or establishing and maintaining collusion. Moreover, ensuring rational economic behaviour and an efficient and competitive market outcome does not require general access to information at a very detailed level or with a high degree of immediacy. I conclude that to achieve the aims of efficiently functioning wholesale electricity markets, fair and non-discriminatory access to data and a coherent and consistent view of the European wholesale electricity market, it does not seem advisable to go quite so far with respect to immediacy and detail as intended by the new regulations.

Keywords: electricity; market performance; information; transparency; regulation (search for similar items in EconPapers)
JEL-codes: D40 D80 K21 L10 L40 L51 L94 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2013-05-22
New Economics Papers: this item is included in nep-com, nep-ene, nep-eur and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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