@article{ART001193474},
author={Chang Hyeun Cho},
title={Some Thoughts on the Operation System of the Electricity Markets},
journal={Journal of Regulation Studies},
issn={1738-7132},
year={2007},
volume={16},
number={1},
pages={117-144}
TY - JOUR
AU - Chang Hyeun Cho
TI - Some Thoughts on the Operation System of the Electricity Markets
JO - Journal of Regulation Studies
PY - 2007
VL - 16
IS - 1
PB - 한국규제학회
SP - 117
EP - 144
SN - 1738-7132
AB - This study examines main issues of the operation system of the current electricity markets, digs out the relevant problems, and suggests their possible solutions. One of the major problems of the CBP, the essence of the operation system of the current electricity markets, is the distortion of the motivation system related to capacity prices. To remedy this problem, needed are an introduction of the future-rewarding incentive system for facility expansion and downward adjustment of the capacity prices for the base-load generators. It is necessary to approach cautiously and with a critical view to the recent discussions on the unification of the compensation system for the variable costs. Under the distorted structure of the electricity markets and the CBP, the unification of the compensation system for the variable costs will not give rise to any positive effect, but will just result in the change in profitability relationships between KEPCO and its subsidiaries. Rather, the unification will raise the possibility of causing the distortion of the competition environment and incentive system. It is needed to set up the capacity limits of the generation facilities of the zonal electricity supply business more flexibly. It is also needed to apply dynamically more flexible criteria to the capacity-maintaining condition for the zonal electricity supply business. In order to facilitate the zonal electricity supply business, it is critical to set up an compensation system for inducing the expansion of facility investment in the long run. To convey the efficiency enhancement effect created from the reform in the distribution sector to the electricity markets and consumer welfare, a connection link should be made between the system of electricity markets and electricity retail prices.
KW - electricity markets;variable costs;capacity price;compensation system;restructuring
DO -
UR -
ER -
Chang Hyeun Cho. (2007). Some Thoughts on the Operation System of the Electricity Markets. Journal of Regulation Studies, 16(1), 117-144.
Chang Hyeun Cho. 2007, "Some Thoughts on the Operation System of the Electricity Markets", Journal of Regulation Studies, vol.16, no.1 pp.117-144.
Chang Hyeun Cho "Some Thoughts on the Operation System of the Electricity Markets" Journal of Regulation Studies 16.1 pp.117-144 (2007) : 117.
Chang Hyeun Cho. Some Thoughts on the Operation System of the Electricity Markets. 2007; 16(1), 117-144.
Chang Hyeun Cho. "Some Thoughts on the Operation System of the Electricity Markets" Journal of Regulation Studies 16, no.1 (2007) : 117-144.
Chang Hyeun Cho. Some Thoughts on the Operation System of the Electricity Markets. Journal of Regulation Studies, 16(1), 117-144.
Chang Hyeun Cho. Some Thoughts on the Operation System of the Electricity Markets. Journal of Regulation Studies. 2007; 16(1) 117-144.
Chang Hyeun Cho. Some Thoughts on the Operation System of the Electricity Markets. 2007; 16(1), 117-144.
Chang Hyeun Cho. "Some Thoughts on the Operation System of the Electricity Markets" Journal of Regulation Studies 16, no.1 (2007) : 117-144.
