Electricity prices in the Finnish retail market

Working Papers 259 Eero Lehto

Abstract

This study focuses, firstly, on the pricing of electricity in the Finnish retail market. In particular, the impact of the ownership structure on prices is tested empirically. Secondly, the influence of low-cost electricity sources on retail prices is considered. The question about whether the average fuel costs rather than the wholesale price determines the retail prices is thus addressed. The supply side behaviour characterized may explain the passivity of client activity in the seemingly competitive Finnish market.

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