The effect of power distribution privatization on electricity prices in Turkey: Has liberalization served the purpose?

Today, renewable energy sources are receiving attention in many parts of Iran. The increase in the penetration rate of these sources in Iran's distribution network will have extensive adverse effects. The retail price of Iran's electricity market is one of the most critical factors affected by Distributed Generation (DG). Many customers of the distribution company in Iran pay less for electricity; They install photovoltaic panels on the roof of their houses or use other sources such as combined heat and power and small wind turbines; to supply a minor part of their electricity consumption through the national electricity network of Iran. This will reduce the income of distribution companies in Iran. According to the regulation of the distribution companies' payment, this revenue decrease should be recovered through an increase in the price of electricity. The increase in the electricity rate makes the customers use DG resources in advance to pay less money for electricity to the distribution company. In this article, DG resources, their types, goals, and benefits are introduced; And the structure of the tariff market of Iran's electricity distribution company is examined. Based on the findings of this article, it can be concluded that by installing DGs, significant savings can be achieved in the amount customers pay for electricity. Furthermore, Iran customers will significantly desire to buy and install these resources. However, DG can change the tariff structure of retail electricity prices in Iran's electricity market.

This paper analyzes electricity markets in Slovenia during the specific period of market deregulation and price liberalization. The drivers of electricity prices and electricity consumption are investigated. The Slovenian electricity markets are analyzed in relation with the European Energy Exchange (EEX) market. Associations between electricity prices on the one hand, and primary energy prices, variation in air temperature, daily maximum electricity power, and cross-border grid prices on the other hand, are analyzed separately for industrial and household consumers. Monthly data are used in a regression analysis during the period of Slovenia’s electricity market deregulation and price liberalization. Empirical results show that electricity prices achieved in the EEX market were significantly associated with primary energy prices. In Slovenia, the prices for daily maximum electricity power were significantly associated with electricity prices achieved on the EEX market. The increases in electricity prices for households, however, cannot be explained with developments in electricity prices on the EEX market. As the period analyzed is the stage of market deregulation and price liberalization, this can have important policy implications for the countries that still have regulated and monopolized electricity markets. Opening the electricity markets is expected to increase competition and reduce pressures for electricity price increases. However, the experiences and lessons learned among the countries following market deregulation and price liberalization are mixed. For industry, electricity prices affect cost competitiveness, while for households, electricity prices, through expenses, affect their welfare. A competitive and efficient electricity market should balance between suppliers’ and consumers’ market interests. With greening the energy markets and the development of the CO2 emission trading market, it is also important to encourage use of renewable energy sources.

The impact of electricity market liberalization in Turkey: “Free consumer” and distributional monopoly cases

With the development of the national economy and the change of policies, the development of the electric power industry continues to expand. The New Electricity Reform proposes that electricity price is the core of electricity reform, and the power generation side is the main member of the market. Its quotation strategy affects the listing price in the electricity market. Therefore, this paper summarizes the electricity market trading models and bidding strategies on the power generation side, and discusses the bidding strategy based on electricity price prediction. As the core of electricity price forecasting, load forecasting is studied and discussed in detail in this paper. Finally, the future trend of bidding strategy in electricity market is forecasted.

Efficiency in electricity transmission has been a worldwide `hot topic' for more than ten years and has led to reforms in many countries. However, the performance of the restructured electricity markets is often questioned since it depends, to a large extent, on the way market participants collectively respond to market rules and procedures. We examine data from Australia's National Electricity Market with emphasis on variability in spot prices. These data indicate that the structure of electricity generators' bidding offers may be one of the important contributors to the volatility in electricity prices. A scheme for reducing the volatility of spot prices is then proposed in the form of new regulations on the structure of generators' electricity price and volume bids. References Australian Bureau of Statistics: Year Book Australia, Energy: Special Article---Reforms in the Australian Electricity and Gas Industries, http://www.abs.gov.au/ausstats/abs@.nsf/featurearticlesbytitle/C50CABC70C99E249CA2569E3001FF8A5?OpenDocument A. Kay-Spratley, A. Worthington and H. Higgs, Transmission of price and price volatility in australian electricity spot market: a multivariance garch analysis. Energy Economics, 27:337(350), 2005. doi:10.1016/j.eneco.2003.11.002 An introduction to Australia's National Electricity Market, July 2009, http://www.aemo.com.au/corporate/0000-0262.pdf D. Brennan and J. Melanie, Market power in the autralian power market, Energy Economics, 20:121(133), 1998. doi:10.1016/S0140-9883(97)00010-8 M. Goto and G. Karolyi, Understanding Electricity Price Volatility within and across Markets, Working Paper Series 2004-12,2004. http://econpapers.repec.org/RePEc:ecl:ohidic:2004-12 H. Higgs, Price and volatility relationships in the Australian electricity market, PhD Thesis, submitted 2006, Queensland University of Technology. http://eprints.qut.edu.au/16404/ D. P. Kothari and I. J. Nagrath, Modern Power System Analysis, McGraw-Hill, 2008. ISBN 978-0-07-340455-4 F. Longstaff and A. Wang, Electricity Forward Prices: A High-Frequency Empirical Analysis, Journal of Finance, Vol. 59(4) Aug. 2004, pp.1877--1900. doi:10.1111/j.1540-6261.2004.00682.x H. Outhred, The competitive market for electricity in Australia: why it works so well, Proceedings of the 13rd International Conference on System Sciences, 2000. doi:10.1109/HICSS.2000.926760 S. Stoft, Power System Economics, John Wiley, New York, NY, 2002. http://au.wiley.com/WileyCDA/WileyTitle/productCd-0471150401.html F. A. Wolak, An empirical analysis of the impact of hedge contracts on bidding behavior in a competitive electricity market, Stanford University, 1999. doi:10.1080/10168730000000017

PurposeThis study aims to assess volatility spillovers and directional connectedness between electricity (EPs) and natural gas prices (GPs) in the Canadian electricity market, based on a hydrothermal power generation market strongly dependent on exogenous variables such as fossil fuel prices and climatology factors.Design/methodology/approachThe methodology is divided into two stages. First, a quantile vector autoregression model is used to evaluate the direction and magnitude of the influence between natural gas and electricity prices through different quantiles of their distributions. Second, a cross-quantilogram is estimated to measure the directional predictability between these prices. The data set consists of daily electricity and natural gas prices between January 2015 and December 2023.FindingsThe main finding shows that electricity prices are pure shock receivers of volatility from natural gas prices for the different quantiles. In this way, natural gas price fluctuations explain 0.20%, 0.98% and 22.72% of electricity price volatility for the 10th, 50th and 90th quantiles, respectively. On the other hand, a significant and positive correlation is observed in the high quantiles of the electricity prices for any natural gas price value.Originality/valueThe study described the risk to the electricity market caused by nonrenewable source price fluctuations and provided evidence for designing regulatory policies to reduce its exposure in Alberta, Canada. It also allows us to understand the importance of natural gas in the energy transition process and define it as the fundamental determinant of the electricity market dynamic.

The incidence of VAT reforms in electricity markets: Evidence from Belgium

The Chinese government has adopted many policies to save energy and electricity in the chemical industry by improving technology and reforming its electricity market. The improved electricity efficiency and the electricity reform may indirectly reduce expected energy and electricity savings by decreasing the effective electricity price and the marginal cost of electricity services. To analyze the above issues, this paper employs the Morishima Elasticity of Substitution of the electricity cost share equation which is estimated by the DOLS method. The results show that: 1) There exists a rebound effect in the Chinese chemical industry, but it is quite large because the electricity price is being controlled by the government; 2) the reform of the electricity market reduces the rebound effect to 73.85%, as electricity price begins to reflect cost information to some extent; 3) there is still a lot of space for the reform to improve, and the rebound effect could be reduced further once the electricity price is adjusted to transfer the market information more correctly. In order to succeed in saving electricity and decreasing the rebound effect in the chemical industry, the policy implications are provided from perspectives of the improved energy efficiency and electricity pricing mechanism.

Розглянуто проблеми формування тарифної політики в умовах переходу на нову модель ринку електричної енергії в Україні та впровадження стимулюючого ціноутворення у сфері електроенергетики. Визначено основні вади наявної моделі ринку електроенергії; інституціональну структуру і функціональну взаємодію ринкових сегментів нової моделі ринку, заснованої на вільному ціноутворенні на електричну енергію як товар. Акцентовано увагу, що для досягнення секторальної та макроекономічної збалансованості необхідним є належне обгрунтування цін на послуги з розподілу електричної енергії в умовах переходу на нову модель ринку, оскільки тарифи на ці послуги і надалі регулюватимуться державою.Показано, що основними критеріями при формуванні адекватних тарифів в Україні мають бути: посильне фінансове навантаження на більшість учасників ринку електричної енергії з метою забезпечення його збалансованості; достатнє фінансове забезпечення для підтримання належного технічного стану енергетичної інфраструктури. Визначено головні недоліки наявної нормативної бази для впровадження стимулюючого ціноутворення на послуги з розподілу електричної енергії в Україні та причини, пов’язані з відстроченням застосування стимулюючого ціноутворення на дані послуги в Україні.Охарактеризовано основні складові елементи структури стимулюючого ціноутворення, які закладено в економіко-математичну модель з метою сценарного прогнозування фінансово-економічних показників сектору розподілу електричної енергії. Розкрито, що отримані за результатами моделювання прогнозні показники тарифів на розподіл електричної енергії для різних категорій споживачів, а також агреговані фінансово-економічні показники електророзподільних компаній, слід розглядати як галузеві орієнтири для прийняття рішень на рівні національного енергетичного регулятора.

Access to reliable, affordable, and modern electricity is a vital requirement for the survival of the Nigerian population and the economy. The electricity distribution companies (DISCOs) in Nigeria are responsible for the effective distribution of electricity supply to meet consumer needs in a manner that is safe and reliable. Access to electricity is one of the sustainable development goals (SDGs); however, there are several factors that influence and limit the capacity of the DISCOs to achieve that goal. Factors such as poor decision-making, poor management, organisational corruption, resource mismanagement, exposure to electrical risks and hazards, and political interference are both internal and external factors that impede organisational capacity to ensure that DISCOs are effective and efficient in performing their responsibilities. These problems inform the need for the development of a framework of integrated management systems to encourage DISCOs with capacity building for improved organisational performance to meet consumer electricity needs and provide a safe work environment for the employees to achieve that. The research adopted a case study approach and identified that the Abuja Electricity Distribution Company (AEDC) and the Jos Electricity Distribution Company (JEDC) do not have a quality management system (ISO 9001) or an occupational health and safety management system (ISO 45001), which improves organisational performance to achieve its core values and objectives. The research performed a mixed-methods approach involving a combination of quantitative (304 questionnaires representing a 31% response rate of total employees from AEDC and JEDC) and qualitative (32 interview sessions) approaches in the process of data collection and subsequent analysis. A major finding of this study is that DISCOs have not developed enough organisational capacity to tackle the challenges of poor distribution of electricity in Nigeria. Failures of government commitment and DISCO's inability to execute electricity network projects to improve customer experience have contributed to poor quality of life and increased energy poverty within the country. Another major finding showed poor collaborative efforts between the government, the electricity generation companies, the transmission company of Nigeria, community stakeholders, and the DISCOs with the aim of improving the electricity supply. The research therefore develops a framework of integration based on stakeholder participation tailored to the strategic approach and improvement of electricity distribution, making electricity accessible and reliable. The framework development therefore provides an opportunity for DISCOs to build capacity to improve organisational performance and influence other stakeholders through collaborative engagements on the need to improve access to electricity for sustainable development. By enhancing organisational capacity, DISCOs improve the customer experience with electricity in Nigeria, reduce the level of poverty and the negative impacts of poor access to electricity, reduce electrical accident occurrences, and contribute to human and economic development.

The study compares the prediction performance of alternative machine learning algorithms and time series econometric models for daily Turkish electricity prices and defines the determinants of electricity prices by considering seven global, national, and electricity-related variables as well as the COVID-19 pandemic. Daily data that consist of the pre-pandemic (15 February 2019–10 March 2020) and the pandemic (11 March 2020–31 March 2021) periods are included. Moreover, various time series econometric models and machine learning algorithms are applied. The findings reveal that (i) machine learning algorithms present higher prediction performance than time series models for both periods, (ii) renewable sources are the most influential factor for the electricity prices, and (iii) the COVID-19 pandemic caused a change in the importance order of influential factors on the electricity prices. Thus, the empirical results highlight the consideration of machine learning algorithms in electricity price prediction. Based on the empirical results obtained, potential policy implications are also discussed.

Financial and economic factors affecting the lignite prices in Turkey: An analysis of Soma and Can lignites

Shaanxi Regional Electric Power Group Co., Ltd (SPG) is a state owned regional power company and directly belongs to the People's Government of Shaanxi Province in China. In 1989 the former SPG was set up and began its main business of electricity distribution and retail, which was simultaneously along with worldwide electric market reform. As an independent distribution and retail company in China, SPG has got a 26-year development history. This paper presents SPG's main experience of power distribution and retail, in particular the organization framework and business operation mode, and discusses the challenges with the New Electricity Reform in China. These experiences may be valuable to new retail companies set up under the present electric reform in China and be comparable with distribution and retail companies abroad.

<h2>Abstract</h2> <p><strong>Background/Objectives</strong>: In the past couple of decades, several counties all around the globe, decided to conduct some reforms in the way that they manage the electrical power in their countries. Even in Middle East countries like Iran have taken the path to intensively privatize their power distribution and pass it over to the non-governmental sector paving way for security, social and economic threats. For this purpose, lack of proper and optimal management results in distribution companies and the government having to explain its threats so that sovereignty could eliminate the threats or reduce their effects. This study discusses the problems of restructuring the electric power sectors and its defects in Iran distribution companies. <strong>Methods/Statistical analysis</strong>: This paper discusses the problems of re-structuring the electrical power sectors and its defects in the distribution companies. Furthermore, this paper investigates the threats facing the privatization of electricity distribution companies. The threat of monopolization is also analysed in a separate section. Data source gathering is done during 2014-2016. <strong>Findings:</strong> Establishment of formal and legal framework in this regard is provided in such a way that the interests of all stakeholders, including shareholders, employees, subscribers, and government are provided. <strong>Application/Improvements:</strong> Establishment of formal and legal framework in this regard is provided in such a way that the interests of all stakeholders, including shareholders, employees, subscribers, and government are provided. Also, establishment of proper implementation of the privatization of electricity distribution companies in Iran.</p> <div> <p><strong>Keywords: </strong>Iran distribution companies, Electricity distribution company, Monopoly, Privatization, Distribution systems.</p> </div>

Fuzzy Logic Model for Failure Analysis in Electric Power Distribution Systems