We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
When Does Electricity Price Cap Regulation Become Distortionary?
- Authors
Simshauser, Paul
- Abstract
Australia has a deregulated national wholesale electricity market, a national network regulatory framework, but inconsistent state-based regulated retail price caps in workably competitive markets. This article finds that asymmetric information and the complexity of energy markets means that a regulator, no matter how wise and well resourced, could never be expected to produce reliable estimates of competitive prices. If regulation represents a policy constraint, relying on long-run concepts rather than short-run prices is least damaging to the flow of capital and non-linear pricing.
- Subjects
AUSTRALIA; ELECTRIC rates; ELECTRIC utilities; DIRECT costing; AUSTRALIA. Productivity Commission; POWER purchase agreements
- Publication
Australian Economic Review, 2014, Vol 47, Issue 3, p304
- ISSN
0004-9018
- Publication type
Article
- DOI
10.1111/1467-8462.12062