Liberalisation of electricity market: the case of Slovenia

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Table 3: Estimated demand functions, 1998-2008.Real Gross dummypurchase domesticprice productAdjR 2 Fln(Constant) ln(Pw) ln(GDP) ln(dummy)1 ln(D w)9.745 -0.590 0.181 0.974 63.697(8.840) (-10.786) (2.410)2 ln(D w)9.804 -0.598 0.181 -0.020 0.948 36.448(7.188) (-5.376) (2.234) (-0.088)ln – natural logarithm. In the brackets are t-statistics.Source: Own calculations.During the analysed period the real GDP increased, and also purchases of electricalenergy by the retail electricity distribution enterprise tended to increase, while the realwholesale purchase price of electrical energy cyclically oscillated: first, it declined withthe electricity market deregulation, and since 2006 it has increased (Figure 7). Thisclearly illustrates only the temporary decline in the real wholesale price of electricalenergy, following the market deregulation and price liberalisation.Index 2001=100160140120100806040128.05121.56 123.36118.50118.24113.77110.12103.21113.8598.97100.00 95.76 97.51105.8798.2598.51 101.1688.3997.8190.0490.6088.2671.31 80.5575.85 77.82 76.67 74.6168.1046.80143.251993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Nominal priceReal priceFigure 7: Index of nominal and real purchase It prices of electrical energy (2001=100)Source: Own calculations.Revenue function16
The increase in the real wholesale purchase price of electrical energy by 1% increases theelectro distribution enterprise’s total revenues for its further sale of electrical energy by0.685% (Table 4). This suggests that the retail electricity distribution enterprise is notable to fully transmit the increased costs for the purchased electrical energy to the finalconsumers of electrical energy, i.e., industry, public lighting and households. At the sametime, the retail sale of electrical energy is associated with some other costs that are a partof the retail electricity price or total revenues from the sale of electrical energy toconsumers such as costs of wages and expenses for taxes.Table 4: Estimated total real revenue function, 1993-2005Purchasereal price Tax costsCosts forwages AdjR 2 Fln(Constant) ln(Pw) ln(Ctax) ln(Cwages)1 Ln(Revenue)4.702 0.685 0.062 0.264 0.564 6.596(1.457) (2.758) (1.140) (1.301)ln – natural logarithm. In the brackets are t-statistics.Source: Own calculations.Opinions on quality management of wholesale electricity supplyThe increasing competitive pressures in the electricity markets are forcing the electricitydistribution enterprises to compete in both price and quality of supply. We investigate theimportant elements on wholesale-to-retail-sale chain supply management as seen by theparticipants and customers in these relations. We have conducted surveys with therespondents by using the written questionnaire to gain insights into opinions on factors ofquality management in wholesale-to-retail-sale electricity supply chain management. Theanswers to nine questions were obtained in a form of the Likert scale, where 1 means notimportant at all, and 5 means very important. In addition, we include control questions togain additional insights into important determinants for competitive electricity supplychain management. Among the respondents in the surveys, several are experts in energysupply chain management. We obtained 72 completed surveys out of 150. By education,there are 5.6% with a Master’s degree or higher, 41.7% with a graduate degree, 22.2%with a higher education degree, 23.6% with secondary education, and 6.9% withvocational education. By gender, 83.3% are male and 16.7% female.17
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 12 and 13: perfect equality to the total area
Page 14 and 15: ?k% - number of suppliers1009080706
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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