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- Detecting and Measuring Market Power in the Elecricity Market
Detecting and Measuring Market Power in the Elecricity Market
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During the first quarter of commercial operation of the Philippine wholesale electricity market, an unexpected surge in clearing prices led to an investigation of public utilities accused of collusion. This work examines the regulatory response to the first antitrust case in the Philippine electricity market. Using actual offers submitted by generators to the market operator and applying a variant of competitive benchmark analysis, the price surge is traced to strategic bidding and capacity withholding by public generators.
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