Title :
Forward contracts for the operation of an electricity industry under spot pricing
Author :
Kaye, R.J. ; Outhred, H.R. ; Bannister, C.H.
Author_Institution :
New South Wales Univ., Kensington, NSW, Australia
fDate :
2/1/1990 12:00:00 AM
Abstract :
A study is reported of the use of forward contracts as risk instruments for electricity industries operating under spot pricing. Forward contracts involve financial transactions or commitments which relate to a physical trade at a later time instance. Price setting and appropriate participant responses are discussed. Simulation studies are used to demonstrate that forward contracts offer participants an opportunity to reduce their risk exposure without removing the incentive to respond to higher spot prices
Keywords :
electricity supply industry; tariffs; electricity industry; forward contracts; price setting; spot pricing; Australia; Economic forecasting; Forward contracts; Instruments; Intelligent systems; Marketing and sales; Power system simulation; Pricing; Supply and demand; Uncertainty;
Journal_Title :
Power Systems, IEEE Transactions on
