DocumentCode :
1986828
Title :
Venezuelan restructured electricity market-analysis of a dominant firm´s market power
Author :
Dortolina, Carlos A.
Author_Institution :
Dept. of Electr. Power Studies, Inelectra, Caracas, Venezuela
Volume :
2
fYear :
2001
fDate :
15-19 July 2001
Firstpage :
1046
Abstract :
Venezuela is currently restructuring its electric power industry in order to create competition for the generation of electricity, while the transmission and distribution of electricity remain regulated monopolies. The restructuring plan was designed to offer large customers (/spl ges/5 MW, initially) a choice regarding the source of their electricity, stimulate required investments, improve system reliability and reduce the price of electricity. This paper deals with the ability of a dominant firm to exercise market power in Venezuelan electricity market. Results show that, given current and currently forecast market and system conditions, one hydroelectric generating company would have the ability to set prices above marginal costs. Among the options to create effective competition, and mitigate dominant firm´s market power are measures to encourage the entry of new firms, and the imposition of price caps and/or cost plus for hydro plants based on the cost of opportunity of the water.
Keywords :
electricity supply industry; hydroelectric power; hydroelectric power stations; investment; power generation economics; tariffs; Venezuela; competition; electric power industry restructuring; electricity price; hydroelectric generating company; investments; marginal costs; market power; reliability; restructured electricity market; Costs; Economic forecasting; Electricity supply industry; Hydroelectric power generation; Natural gas; Power generation; Power generation economics; Power measurement; Turbines; Voltage;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Power Engineering Society Summer Meeting, 2001
Conference_Location :
Vancouver, BC, Canada
Print_ISBN :
0-7803-7173-9
Type :
conf
DOI :
10.1109/PESS.2001.970203
Filename :
970203
Link To Document :
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