Journal of Energy Markets
ISSN:
1756-3607 (print)
1756-3615 (online)
Editor-in-chief: Derek W. Bunn
Risk-adequate pricing of retail power contracts
Markus Burger, Jan Müller
Abstract
ABSTRACT
Risk-adequate pricing of retail power contracts is essential for energy suppliers. The price of retail contracts is composed of a basic energy price, the sales margin and a premium due to various risk factors. We analyze the price validity period, credit risk, price-volume correlation, individual volume risk, hourly price profile risk, balancing power costs and operational risk with the corresponding adequate risk premium. The main focus of this paper is the price-volume correlation, where a combined load and price model is used. This model allows quantiles of price- volume risk to be determined for a retail portfolio or an individual customer
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Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
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