Will electricity market reform likely reduce retail rates?

Chi Keung WOO, Jay ZARNIKAU

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

To win public support, proponents for electricity market reform to introduce competition often promise that the post-reform retail rates will be lower than the average embedded cost rates that would have prevailed under the status quo of a regulated monopoly. A simple economic analysis shows that such a promise is unlikely to occur without the critical assumption that the post-reform market has marginal costs below average costs. Copyright © 2009 Elsevier Inc. All rights reserved.
Original languageEnglish
Pages (from-to)40-45
JournalElectricity Journal
Volume22
Issue number2
DOIs
Publication statusPublished - Mar 2009

Citation

Woo, C. K., & Zarnikau, J. (2009). Will electricity market reform likely reduce retail rates? The Electricity Journal, 22(2), 40-45. doi: 10.1016/j.tej.2009.01.003

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