deregulated electricity market and auctions the italian case放松管制的电力市场和拍卖意大利的情况.pdfVIP

iBusiness, 2010, 2, 238-242 doi:10.4236/ib.2010.23030 Published Online September 2010 (http://www.SciRP.org/journal/ib) Deregulated Electricity Market and Auctions: The Italian Case Luca Grilli Dipartimento di Scienze Economiche, Matematiche e Statistiche, Università degli Studi di Foggia, Largo Papa Giovanni Paolo II, Foggia, Italy. Email: l.grilli@unifg.it Received March 18th, 2010; revised May 14th, 2010; accepted June 27th, 2010. ABSTRACT The Electricity Market (in Europe) undergoes a period of transformations never seen before. The competitive model suggested by the European Commission is based on a gradual increase in the classes of consumers able to choice, freely, their providers. In general, lib eralization, deregulation, competition result in a spur to development and low prices for consumers. The Electricity Ma rket isn’t likely to follow such a rule. Electricity Markets are best described and analyzed as first-price multi -unit procurement iterated auctions. In this paper we present an analysis of the Italian case in order to show the effects of deregulation on final prices for users. Keywords : Electricity Market, Auctions, Oligopoly, Deregulation 1. Introduction The overall objective was that “trading arrangements should deliver the lowest possible sustainable prices to The 1990s featured a wave of deregulation and priva- all customers, for a supply that is reliable in both the tization of electricity industries in several nations in- short and the long run” (Electricity Pool, U.K. 1998). cluding the U.S., the U.K., Spain and Norway. In Italy In this paper the author shows the main features