Electricity Supply Management in Slovenia

Abstract

This paper investigates electricity production/wholesale-to-retail sale electricity supply anagement in Slovenia focusing on the Gorenjska region in Slovenia. Similar as in other developed countries in Europe, the rapid increases in electricity supply in Slovenia has been caused by increasing industry, public and households electricity demands during the last fifth decades. We analyse structures and dynamics in electricity production, wholesale-to-retail marketing and supply chain management that are important for purchases of electricity energy by electricity distribution retailers. By using the Lorenz’s curve and Gini’s coefficient of concentration, it is found relatively a high degree of concentration of wholesale electricity suppliers in delivery of electrical energy to the electricity distribution retailers. Whereas the number of wholesale electricity suppliers has increased, the great majority of them are with relatively small market shares vis-a-vis the large traditional supplier. It is confirmed that the electricity supply by smaller electricity producers/wholesalers is based on renewable sources of energy, which is dependent on weather conditions. The empirical evidence suggests that wholesale-to-retail electricity supply structures are shifting from a monopoly market structure towards a greater competition with characteristics of product differentiation and market segmentation typical for monopolistic competition.