Christchurch seminar: Is Vertical Integration the Natural State of Affairs in Electricity? Re-run in Christchurch on June 5

 

ISCR/University of Canterbury Joint Seminar

Friday 5 June 2009, to be held in the Department of Economics and Finance, University of Canterbury; Commerce Building room 534

This seminar will take place at 3.10-4:30pm

-------------------------------------------------------------------------

Is Vertical Integration the Natural State of Affairs in Electricity?

In reformed electricity systems around the world vertical integration between generation and retailing (or large customers) is emerging as a natural way to manage wholesale price risks and market power issues, and to support investment. It does so against a backdrop of problems with the approach typically relied upon when reforms commence - namely, structural separation supported by long-term contracting. In systems reliant on this approach, contract markets have not emerged or performed as expected, resulting in suppressed investment and in some cases bankruptcies. In this seminar Richard Meade surveys some of the problems associated with contracting in electricity systems, and reasons for why vertical integration offers a more natural alternative. Despite concerns about the impact of vertical integration on retail entry, there is reason to believe vertical integration is a better approach to managing wholesale market power and to sustain retail competition, while at the same time preserving incentives for investment.

Presented by:            Richard Meade

Richard Meade is a Research Principal at ISCR and Principal of Cognitus Advisory Services Limited.  This seminar is based on the invited paper (co-authored with Seini O'Connor), Comparison of Long-Term Contracts and Vertical Integration in Decentralised Electricity Markets, that he presented in January at a workshop hosted by LARSEN-EUI in Florence.

           If you would like to attend this seminar please contact:

andrea.menclova@canterbury.ac.nz          

Phone: 03 364-2823

Please note: numbers are limited so don't delay!