Abstract
The construction of the electricity market prior to the privatisation of the UK industry gave rise to an open market in physical electricity, known as the pool. It also gave rise to a completely new type of commodity risk for generators, suppliers and users of electricity: electricity price risk. Electricity prices in the pool are highly volatile: typically they average around £20/MWh, but sometimes fall to below £10/MWh and on occasion rise to above £300/MWh.
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© 1993 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Danziger, J. (1993). The Forward Market in Electricity. In: OTC Markets in Derivative Instruments. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-13053-5_6
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DOI: https://doi.org/10.1007/978-1-349-13053-5_6
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-333-58308-1
Online ISBN: 978-1-349-13053-5
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