Resumen de Market power in the spanish wholesale electricity market
María Paz Espinosa Alejos, Aitor Ciarreta Antuñano
In the context of the recent electricity market reforms in Europe and the US, we evaluate the performance of the Spanish pool. Our method is not based on price-cost estimates but rather on the different behavior of operators with higher market power as compared to the behavior of more competitive operators. Our results indicate that the two larger operators in the market are able to increase prices by a significant amount as compared to the situation in which each plant is run independently.
