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Formation Of A Target Model Of The Retail Power Market

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  • I. Gerasimov

Abstract

This article reviews various paths of possible development of wholesale and retail electric power markets. The authors analyse the electric power market target model whose implementa-tion is to start from 2012. Also an alternative model is described, whose purpose is to facilitate creation of a healthy competitive environment. In this model a retail supplier plays a role of bro-ker for a customer, which may freely choose a generating company - an electric power supplier. This model alleviates the relationship between sales companies and power network companies; the risk of non-payment in retail segment is transferred from intermediary to electric power sup-plier. Besides, for the purpose of decreasing risks of electric power rates fluctuation, this model suggests introduction of a special mechanism damping wholesale market rate oscillations. This mechanism may be implemented by a dedicated insurance fund.

Suggested Citation

  • I. Gerasimov, 2014. "Formation Of A Target Model Of The Retail Power Market," Strategic decisions and risk management, Real Economy Publishing House, issue 4.
    • Handle: RePEc:abw:journl:y:2014:id:227
    DOI: 10.17747/2078-8886-2011-4-94-103
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