Market power in the spanish wholesale electricity market

Key Points

• Prices significantly increase when major operators exert market power, demonstrating a clear discrepancy with competitive behavior.
• The analysis focuses on operator behaviors rather than traditional price-cost estimates, revealing insights about market dynamics.
• The two largest operators' ability to manipulate prices raises concerns about overall market competitiveness and fairness.
• Understanding these dynamics is essential for regulators aiming to promote competition in the electricity market.

Abstract