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Methods of Evaluation of the Market Power Level on the Wholesale Electricity Market

  • A. Trachuk
  • D. G. Sandler
Chapter
Part of the Innovation and Discovery in Russian Science and Engineering book series (IDRSE)

Abstract

The paper is concerned with evaluation of the competitive relations within reformed natural monopolies in the energy industry. This task seems to be extremely relevant, as it allows one to make decisions on the need for market structural changes, pricing policy, and the development of energy companies’ customer focus. In particular, the device is formulated based on the use of the Herfindahl–Hirschman index, which allows the assessing of the market power of market players that have appeared after the reform of natural monopolies. The limits of its use have been determined. In addition, a number of tools for the assessment of the market power of buyers in those markets have been offered. Based on analysis and calculations, certain proposals for improving competition on the wholesale electricity market were made.

Keywords

Competition Natural monopolies Electricity market Market power Oligopoly 

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • A. Trachuk
    • 1
  • D. G. Sandler
    • 2
  1. 1.FSUE Goznak, Financial University Under the Government of the Russian FederationMoscowRussia
  2. 2.Ural Federal UniversityYekaterinburgRussia

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