Work detail

Consequences of liberalization of electricity market

Author: Bc. Roman Kalabiška
Year: 2016 - summer
Leaders: Mgr. Petr Polák MSc. Ph.D.
Work type: Bachelors
Language: Czech
Pages: 69
Awards and prizes:
Abstract: This thesis examines the impacts of liberalization of electricity market. The first part of
this work provides theoretical overview of the liberalization process and electricity
market design in Czech Republic. To understand how the european wholesale markets
are integrated, I have performed correlation analysis of daily spot prices on selected
power exchanges. On the basic of this analysis I confirmed that selected power
exchanges are on different levels of integration and have higher dependency on regional
level. The second part of the empirical part is focused on the impact of competition on
czech retail market. The objective was to show that liberalization and following increase
of competition in electricity market result into decrease of retailers‘ gross profit margins
in the segment of housholds with ordinary consumption. The last part of this work is
focused on the measurement of market power using the most famous methods of
measuring market power, such as Lerner index and Herfindahl-Hirschman index. My
calculations indicate that while market concentration has decreased in the long run,
since 2012 it is slightly increasing. I have also learned that selected retailers are on
similar level of market power. This work fills the gap in literature focusing on the issue
of measuring market power and market concentration of czech electricity market.


Česká Spořitelna


Patria Finance