Will Electricity Market Reform Likely Reduce Retail Rates?

Chi-Keung WOO, Jay Zarnikau

    Research output: Contribution to journalArticlepeer-review

    8 Citations (Scopus)

    Abstract

    To win public support, proponents for electricity market reform to introduce competition often promise that the post-reform retail rates will be lower than the average embedded cost rates that would have prevailed under the status quo of a regulated monopoly. A simple economic analysis shows that such a promise is unlikely to occur without the critical assumption that the post-reform market has marginal costs below average costs.

    Original languageEnglish
    Pages (from-to)40-45
    Number of pages6
    JournalElectricity Journal
    Volume22
    Issue number2
    DOIs
    Publication statusPublished - Mar 2009

    Scopus Subject Areas

    • Business and International Management
    • Energy (miscellaneous)
    • Management of Technology and Innovation

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