Measuring Liquidity in Gas Markets: The Case of the UK National Balancing Point. ESRI Research Bulletin 2019/06

Liquidity is the ability to match buyers and sellers at the lowest transaction costs. Therefore, in a liquid market, executing a transaction over a short-time horizon does not imply higher costs than spreading the same transaction over a longer horizon. Policymakers and practitioners traditionally use the churn ratio to measure liquidity in gas markets. The churn ratio is the ratio of traded volume to actual physical delivery. However, this measure does not consider the impact of trading activity on prices. This research focuses on applying different measures of liquidity, which are used in financial markets, to measure and assess the impact of trading activity on prices. The UK National Balancing Point (NBP) is used as a case study, since it is the most mature hub for gas trading in Europe. Therefore, conclusions from this study can be extended to other gas markets. The research shows that a positive correlation exists between trading activity and prices in the market. However, the strength of this correlation changes over time, depending upon market conditions. Specifically, in the presence of oversupply the impact of trading activity on prices is lower, thus implying that trading a high amount of gas is less expensive, and liquidity is high. Consequently, risk management costs are also less expensive

What is the effect of size on the use of the EFQM excellence model?

Purpose By contrasting a contingency with a universal approach to business excellence models (BEMs), the purpose of this paper is to investigate the effect of size on the use of the European Foundation for Quality Management (EFQM) model by organizations that were officially “Recognized for Excellence” in Spain. It considers the potential differences between large organizations and SMEs on the level of adoption of EFQM criteria and on the impact that enablers-criteria may have on key performance measures. Design/methodology/approach This study uses actual sub-criteria and criteria scores attained by organizations in their assessment for EFQM recognition. Scores of a population of 216 organizations are analyzed via analysis of variance, factor and structural equations models. Findings Although there are some criteria in the EFQM model that appear to be universally adopted irrespective of size, the empirical analyses indicate that size may shape the adoption of other criteria and the impact that enablers can have on results, thus supporting a contingency perspective. Moreover, the findings call for the revision of the relationships embedded in the EFQM model. Originality/value In contrast to most previous research, which relied on surveys of managers’ perceptions, this study uses the actual scores achieved by organizations in their assessment for EFQM recognition. It addresses the effect of size on the whole model, which so far has been neglected in the literature. All in all this study contributes to the literature on contingency approaches to best practices, and more specifically to BEMs. To the practitioner, it provides guidelines for addressing perceived performance gaps in their pursuit of recognition for excellence

A comparison of univariate methods for forecasting electricity demand up to a day ahead

This empirical paper compares the accuracy of six univariate methods for short-term electricity demand forecasting for lead times up to a day ahead. The very short lead times are of particular interest as univariate methods are often replaced by multivariate methods for prediction beyond about six hours ahead. The methods considered include the recently proposed exponential smoothing method for double seasonality and a new method based on principal component analysis (PCA). The methods are compared using a time series of hourly demand for Rio de Janeiro and a series of half-hourly demand for England and Wales. The PCA method performed well, but, overall, the best results were achieved with the exponential smoothing method, leading us to conclude that simpler and more robust methods, which require little domain knowledge, can outperform more complex alternatives

Family-Friendly Management, Organizational Performance and Social Legitimacy

Research on family-friendly practices has concentrated on the predictors of their use, particularly from the perspective of either institutional theory or the high involvement or commitment management vogue. This paper first shows how such perspectives can be used to generate hypotheses about the link between family-friendly management and organizational performance. Second, the paper reports research designed to test these, using data from a national representative sample of workplaces across the British economy, the Workplace Employment Relations Survey of 2004 (WERS2004). The results support the high commitment thesis that family-friendly management will strengthen the relationship between commitment and key economic outcomes, as the relationships between workforce commitment and productivity or quality are stronger in organizations when friendly management is high, which is consistent with social exchange theory. Family-friendly management is not, however, related to the human resource outcomes of labour turnover and absenteeism. Nor does the study find support for the argument that its use in conjunction with high involvement management enhances the performance effects of both. Equally, there is no support for the hypothesis from the institutional thesis that family-friendly management has positive effects on the legitimacy of the organization

MONITORAMENTO DO RESERVATÓRIO DE PITUAÇU, INSERIDO NA MATRIZ DE EXPANSÃO URBANA DA CIDADE DE SALVADOR - BAHIA

O reservatÛrio de PituaÁu, na matriz de expans„o urbana da cidade de Salvador (Bahia), encontra-se inserido no Parque Metropolitano de PituaÁu. Esse foi fundado em 1973 com 660 hectares e atualmente possui uma ·rea de aproximadamente 390 hectares, a reduÁ„o È consequÍncia das intervenÁıes histÛricas que ocorreram na ·rea e no entorno do reservatÛrio. O trabalho tem objetivo apresentar os resultados dos par‚metros monitorados pela Empresa Baiana de ¡guas e Saneamento (Embasa) no perÌodo entre os anos de 2007 atÈ 2015. No delineamento amostral foram distribuÌdos aleatoriamente 09 pontos, com frequÍncia de monitoramento semestral, onde apenas os par‚metros: Cloreto Total, Potencial HidrogeniÙnico, Demanda BioquÌmica de OxigÍnio, FÛsforo Total, NitrogÍnio Amoniacal, Nitrato, AlumÌnio Dissolvido, B·rio Total, C·dmio Total, Chumbo Total, Ferro Dissolvido, ManganÍs Total, Zinco Total, OxigÍnio Dissolvido, SÛlidos Dissolvidos, Sulfato Total, Turbidez, Clorofila-a, Coliformes Termotolerantes, CianobactÈrias e Cianotoxinas, apresentam resultados significativos para discutir a qualidade da ·gua do reservatÛrio. As ocupaÁıes irregulares na bacia hidrogr·fica do rio PituaÁu promovem aporte de nutrientes org‚nicos e inorg‚nicos que comprometem a qualidade da ·gua, conforme indica os par‚metros analisados. O elevado tempo de residÍncia da ·gua no reservatÛrio potencializa a degradaÁ„o dos nutrientes aportados pelas fontes antrÛpicas localizadas na bacia hidrogr·fica. As alteraÁıes observadas no monitoramento indicam variaÁıes significativas no grau de trofia do reservatÛrio, onde o mesmo flutua dentro do balanÁo hÌdrico anual entre os estados eutrÛfico e hipereutrÛfico. A qualidade da ·gua n„o atende os par‚metros destinados ao enquadramento para consumo humano e a Empresa Baiana de ¡guas e Saneamento (Embasa), apesar de possuir estrutura eficiente para o tratamento convencional, n„o utiliza o reservatÛrio para abastecimento da populaÁ„o da cidade de Salvador (Bahia). Contudo, mantÈm o programa de monitoramento ativo, visando auxiliar os Ûrg„os respons·veis pela gest„o do Parque Metropolitano de PituaÁu na definiÁ„o dos usos para o reservatÛrio

Time-varying convergence in European electricity spot markets and their association with carbon and fuel prices

Long-run dynamics of electricity prices are expected to reflect fuel price developments, since fuels generally account for a large share in the cost of generation. As an integrated European market for electricity develops, wholesale electricity prices should be converging as a result of market coupling and increased interconnectivity. Electricity mixes are also changing, spurred by a drive to significantly in-crease the share of renewables. Consequently, the electricity wholesale price dynamics are evolving, and the fuel-electricity price nexus that has been described in the literature is likely to reflect this evolution. This study investigates associations between spot prices from the British, French and Nordpool markets with those in connected electricity markets and fuel input prices, from December 2005 to October 2013. In order to assess the time-varying dynamics of electricity spot price series, localized autocorrelation functions are used. Electricity spot prices in the three markets are found to have stationary and non-stationary periods. When a trend in spot prices is observed, it is likely to reflect the trend in fuel prices. Cointegration analysis is then used to assess co-movement between electricity spot prices and fuel inputs to generation. The results show that British electricity spot prices are associated with fuel prices and not with price developments in connected markets, while the opposite is observed in the French and Nordpool day-ahead markets

High Involvement Management, High Performance Work Systems and Well-being

Studies on the impact of high-performance work systems on employees' well-being are emerging but the underlying theory remains weak. This paper attempts to develop theory of the effects on well-being of four dimensions of high-performance work systems: enriched jobs, high involvement management, employee voice, and motivational supports. Hypothesized associations are tested using multilevel models and data from Britain's Workplace Employment Relations Survey of 2004 (WERS2004). Results show that enriched jobs are positively associated with both measures of well-being: job satisfaction and anxiety–contentment. Voice is positively associated with job satisfaction, and motivational supports with neither measure. The results for high involvement management are not as predicted because it increases anxiety and is independent of job satisfaction

The integration of human resource and operation management practices and its link with performance: A longitudinal latent class study

This paper reviews the literature on the association between lean production and performance. From this, propositions on the integration and evolution of operation and human resource management practices associated with the lean production concept are developed. Using 24 years of data on the use of seven core OM and HRM practices in British manufacturing firms, the potential link between integration in the use of practices and productivity is tested. In each year, three latent clusters are identified via ordered restricted latent class models; the cluster that consistently makes a more integrated use of practices outperforms the others. Furthermore, the longitudinal nature of the data permits modeling the growth curves of each practice in the sample, recognizing any similarity in growth and investigating whether or not an early integration in adoption of practices is associated with higher final productivity. The results show that pioneers are more productive, thus suggesting that the head start in integrating core OM and HRM practices associated with the lean production concept has paid off. © 2010 Elsevier B.V. All rights reserved

Enriched job design, high involvement management and organizational performance: The mediating roles of job satisfaction and well-being

The relationship between organizational performance and two dimensions of the 'high performance work system' - enriched job design and high involvement management (HIM) - is widely assumed to be mediated by worker well-being. We outline the basis for three models: mutual-gains, in which employee involvement increases well-being and this mediates its positive relationship with performance; conflicting outcomes, which associates involvement with increased stress for workers, accounting for its positive performance effects; and counteracting effects, which associates involvement with increased stress and dissatisfaction, reducing its positive performance effects. These are tested using the UK's Workplace Employment Relations Survey 2004. Job satisfaction mediates the relationship between enriched job design and four performance indicators, supporting the mutual gains model; but HIM is negatively related to job satisfaction and this depresses a positive relationship between HIM and the economic performance measures, supporting a counteracting effects model. Finally, HIM is negatively related to job-related anxiety-comfort and enriched job design is unrelated to it. © The Author(s) 2012

What characterizes leading companies within business excellence models? An analysis of “EFQM recognized for excellence” recipients in Spain

This paper investigates whether there is a specific approach to the adoption of best management practices embedded in the EFQM Excellence Model, which characterizes leading “Recognized for Excellence” organizations in Spain. In addition, it studies which practices within EFQM’s enablers predict high performance. In contrast to most previous research that used surveys of managers’ perceptions, this study uses the actual criteria and sub-criteria scores attained by organizations in their assessment for EFQM recognition. Scores of a population of 216 organizations, which were assessed in the period from March 2011 to March 2013, are analyzed via ANOVA, factor and regression analyses. The findings show that Spanish organizations adopt the best practices encompassing the EFQM model in a similar fashion: organizations on average follow parallel trends in the scores received per criterion, and there are no significant differences in the importance attributed to enablers. Either role models are being followed, or most organizations know what is expected by the assessors and try to fulfil these expectations. Consequently, an imitative process disseminates and legitimizes the EFQM model in Spain. In addition, it is found that the People criterion makes a difference in attaining high performance, thus emphasizing the relative importance of the softer dimension in Quality Management. This study contributes to the management literature on best practices, by highlighting a consistent trend in the use of the EFQM model, and also provides insights to managers on how to better allocate resources within Business Excellence Models