Slides now available from seminar - Vertically Integrated Electricity Generators – Villains, Victims or Heroes?
To view slides please click here. To view Richard's thesis paper click here.
Vertically Integrated Electricity Generators - Villains, Victims or Heroes?
Given the market power of electricity generators, should they be allowed to own electricity retailers - i.e. to vertically integrate - or should vertical separation from retailers be required? How does vertical integration change the operation of forward contract, spot wholesale and retail markets? If generators themselves choose to be vertically integrated, doesn't that mean consumers will suffer? Richard Meade presents his recently completed Masters thesis from the Toulouse School of Economics, in which he develops a formal model to address these questions. His previous work suggests there are benefits to vertical integration - his latest modelling demonstrates that VI is clearly superior in welfare terms to vertical separation. This remains true even though vertically-integrated generators can engage in apparently anti-competitive behaviour. Indeed, generators may need to integrate in order to protect themselves against the countervailing behaviours of retailers.
Richard Meade is a Research Associate of ISCR, and Principal of Cognitus Advisory Services Limited. He has previously co-authored works on vertical integration in the electricity sector with Seamus Hogan and Seini O'Connor. His research interests include optimal regulation, ownership and industrial organisation, with a particular focus on the electricity sector. Richard recently obtained his Masters degree at Toulouse School of Economics, and has been offered a funded position on the TSE doctoral programme.
If you would like to attend this seminar please contact:
kathy.mckenzie@vuw.ac.nz or tel: +64 4 463 5562
Feel free to pass this on to other colleagues who you think may be interested in attending