Methods of Evaluation of the Market Power Level on the Wholesale Electricity Market
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.
KeywordsCompetition Natural monopolies Electricity market Market power Oligopoly
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