Did English Generators Play Cournot? Capacity Withholding in the Electricity Pool

Electricity generators can raise the price of power by withholding their plant from the market. We discuss two ways in which this could have affected prices in the England and Wales Pool. Withholding low-cost capacity that should be generating will raise energy prices but make the pattern of generation less efficient. This pattern improved significantly after privatisation. Withholding capacity that was not expected to generate would raise the Capacity Payments based on spare capacity. On a multi-year basis, these did not usually exceed �competitive� levels, the cost of keeping stations open. The evidence for large-scale capacity withholding is weak

Retail Competition and Electricity Contracts

Long-term contracts for electricity can counter market power and reduce prices in short-term markets. If electricity retailers face competition, however, companies signing long-term contracts are exposed to the risk that a fall in short-term prices would allow rivals to buy on the spot market and undercut them. Could this lead to less contracting and higher prices? This paper combines a model of electricity retailing and a Cournot model of competition in the wholesale markets to estimate the size of this effect, and finds that it could raise wholesale prices by two or three percent

Why did British Electricity Prices Fall after 1998?

In an attempt to reduce high electricity prices in England and Wales the government has reduced concentration among generators and introduced New Electricity Trading Arrangements (NETA). Econometric analysis on monthly data from April 1996 to September 2002 implies support for two conflicting hypotheses. On a static view, increases in competition and the capacity margin were chiefly responsible for the fall in prices. If generators had been tacitly colluding before NETA, however, the impending change in market rules might have changed their behaviour a few months before the abolition of the Pool. That view implies that NETA reduced prices

Why did British electricity prices fall after 1998?

In an attempt to reduce high electricity prices in England and Wales the government has reduced concentration among generators and introduced New Electricity Trading Arrangements (NETA). Econometric analysis on monthly data from April 1996 to September 2002 implies support for two conflicting hypotheses. On a static view, increases in competition and the capacity margin were chiefly responsible for the fall in prices. If generators had been tacitly colluding before NETA, however, the impending change in market rules might have changed their behaviour a few months before the abolition of the Pool. That view implies that NETA reduced prices.electricity, market power, concentration, market rules

A Tracing Method for Pricing Inter-Area Electricity Trades

In the context of liberalisation of electricity markets world wide, the need for agreed protocols for electricity trades between systems with different charges poses a special challenge. System operators need to know how much a given trade uses the network, in order to allocate an appropriate portion of their costs to that trade. This paper discusses a technique, tracing, for determining how much each of a number of trades uses different parts of the electricity network. The scheme is based on the assumption that at any network node, inflows are shared proportionally between outflows (and vice versa). The paper outlines the technique and shows how it could be applied to the problem of charging cross-border trades. The paper goes on to demonstrate that the technique has a game theoretic rationale, in that it produces the Shapley value solution to a game equivalent to this allocation problem

Benchmarking Electricity Liberalisation in Europe

In this paper, we discuss the choice and use of benchmarks in each of five areas relevant to an assessment of the progress of EU electricity sector liberalisation. These areas are market design, market power, EU enlargement, regulation, and sustainability. Our aim is to discuss the most important benchmarks for each area, and to do so in the context of that area. Where a benchmark can be used as a signal that things are going well (or badly) we will discuss the values associated with a good (or bad) signal. This paper forms part of the final report of the EU funded Sustainable Energy Specific Support Assessment project (SESSA, see www.sessa.eu.com)

Welfare Reform in Agricultural California

When welfare reforms were enacted in 1996, a higher than average percentage of residents in the agricultural heartland of California, the San Joaquin Valley, received cash assistance. Average annual unemployment rates during the 1990s ranged from 12% to 20%, and 15% to 20% of residents in major farming counties received cash benefits. This analysis develops and estimates a two-equation cross-sectionally correlated and timewise autoregressive model to test the hypothesis that in agricultural areas, seasonal work, low earnings, and high unemployment, as well as few entry-level jobs that offer wages and benefits equivalent to welfare benefits, promote welfare use and limit the potential of local labor markets to absorb ex-welfare recipients.cross-sectionally correlated and timewise autoregressive model, farm workers, immigration, welfare reform, Public Economics,

Isolation and characterization of microsatellites in the lichen Buellia frigida (Physciaceae), an Antarctic endemic

Premise of the study: Microsatellite markers were characterized for an Antarctic endemic, Buellia frigida, to investigate population structure and origin of Antarctic lichens. Methods and Results: Five primer sets were characterized. All loci were polymorphic with eight to 16 alleles per locus in a sample of 59 lichens. Conclusions: The microsatellite markers potentially provide insight into population structure and gene flow of B. frigida

Mid-Infrared nonlinear silicon photonics

Recently there has been a growing interest in mid-infrared (mid-IR) photonic technology with a wavelength of operation approximately from 2-14 mu m. Among several established mid-IR photonic platforms, silicon nanophotonic platform could potentially offer ultra-compact, and monolithically integrated mid-IR photonic devices and device arrays, which could have board impact in the mid-IR technology, such as molecular spectroscopy, and imaging. At room temperature, silicon has a bandgap similar to 1.12 eV resulting in vanishing two-photon absorption (TPA) for mid-IR wavelengths beyond 2.2 mu m, which, coupled with silicon's large nonlinear index of refraction and its strong waveguide optical confinement, enables efficient nonlinear processes in the mid-IR. By taking advantage of these nonlinear processes and judicious dispersion engineering in silicon waveguides, we have recently demonstrated a handful of silicon mid-IR nonlinear components, including optical parametric amplifiers (OPA), broadband sources, and a wavelength translator. Silicon nanophotonic waveguide's anomalous dispersion design, providing four-wave-mixing (FWM) phase-matching, has enabled the first demonstration of silicon mid-IR optical parametric amplifier (OPA) with a net off-chip gain exceeding 13 dB. In addition, reduction of propagation losses and balanced second and fourth order waveguide dispersion design led to an OPA with an extremely broadband gain spectrum from 1.9-2.5 mu m and > 50 dB parametric gain, upon which several novel silicon mid-IR light sources were built, including a mid-IR optical parametric oscillator, and a supercontinuum source. Finally, a mid-IR wavelength translation device, capable of translating signals near 2.4 mu m to the telecom-band near 1.6 mu m with simultaneous 19 dB gain, was demonstrated