Liberalisation of electricity market: the case of Slovenia

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perfect equality to the total area under the line of perfect equality. When there is perfectequality, then the Gini coefficient would equal zero. More specifically, the Ginicoefficient of the degree of market concentration is calculated in the following way:Symbols:K∑f k%( φk% + φk−1%)k=1G = 1−10000G – Gini coefficient of concentrationF k%– share of cumulative frequency (%)φk% – cumulative of relative flowsF k%– share of cumulative frequency (%)(7)When the Gini coefficient is equal to 0, then there is no market concentration, and whenit is equal to 1, then there is full market concentration.We estimate the demand function for purchases of electrical energy by the retailelectricity distribution enterprise, which is explained by the real purchase electricity priceand GDP:Dw =f ( P , GDP)wwhereD wis the demand for electrical energy defined as the purchased quantity ofelectrical energy by the retail electro distribution enterprise,P wis the real purchase priceof electrical energy, and GDP is gross domestic product. Moreover, the dummy variableequal to 1 for the liberalisation years with the start in 2001 is included, and zerootherwise.We also estimate the total real revenue function for electricity sales by the retailelectricity distribution enterprise, which is explained by the real purchase wholesaleelectricity price, expenses for paid taxes and expenses for paid wages:Re venue =wf ( Pw, Ctax, Cwages)whereRevenue wis total real revenue from the sale of electrical energy by the electrodistributionenterprise,P wis the real wholesale purchase price of electrical energy by the12
electricity distribution enterprise,C taxare the real expenses paid by the electricitydistribution enterprise for taxes, andC wagesare the real expenses paid by the electricitydistribution enterprise for wages.The regressions are estimated using the ordinary least square (OLS) method.The multivariate factor analysis (Norušis, 2002) is applied in the analysis of the uniquesurvey evidence to identify common factors important in wholesale-to-retail-saleelectricity supply chain management, which is important for wholesale suppliers and forthe retail electricity distribution enterprise.Empirical resultsLorenz curveThe Lorenz curve presents the concentration of the wholesale electricity suppliers in totalpurchases of electrical energy by the retail electrical distribution enterprise. Thewholesale suppliers of electrical energy are segmented by the quantity of the suppliedelectrical energy. Figure 5 indicates that 3% of the largest wholesale electricity suppliersout of 91 wholesale electricity suppliers have a 95% share in total purchases of electricalenergy by the retail electricity distribution enterprise. The Lorenz curve in the right handbottom corner clearly confirms the very high concentration of the wholesale electricitysuppliers (108) in Slovenia: 6% of the largest wholesale electricity suppliers supply 98%of total electrical energy to the retail electricity distribution enterprises, and 1% of thelargest ones supply 72% of electrical energy. The HSE is the largest single wholesaleelectricity supplier. The Gorenjska electricity plant is also one wholesale electricitysupplier with its 17 electricity plants. A slightly lower concentration of electricity supplyis seen for private and industrial small hydro-electricity plants.13
Page 1: Liberalisation of the electricity m
Page 4 and 5: identified clearly that the HES has
Page 6 and 7: Table 1: Purchases of electrical en
Page 8 and 9: the same direction with the increas
Page 10 and 11: MethodologyAs the methods of analys
Page 14 and 15: ?k% - number of suppliers1009080706
Page 16 and 17: Table 3: Estimated demand functions
Page 18 and 19: The correlation analysis of variabl
Page 20 and 21: The deregulation and liberalization
Page 22: Stern, N. (2007), The Economics of

Liberalisation of electricity market: the case of Slovenia

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