Some researchers reported that electricity prices in the deregulated states are higher and escalating faster than in the still regulated states .. !!
yes! liberalization of electricity market is theoretical construct and it has no practical relevance.
I can say without the fear of being contradicted elsewhere that in the Nigerian context, that Electricity deregulation has up till today (08/04/2015) not achieved the desire benefits. The benefits of deregulation are Increase Reliability, Security, and Quality of supply. Today we are witnessing the most outrageous load shedding in the history of Nigeria.
Four (4) hours 'ON' Eight (8) hours 'OFF', we end up with only eight (8) hours of Electricity if all things are equal. (No faults, disturbances, Transient and Contingency).
The Irony is that residential consumers without prepaid meters pay the same amount as bills either 8-hours, 12hours or No Power at all.
We need a good political will to back the deregulation of the power sector.
Great thanks dear Siddiqui and Sadiq .. What do you think are the reasons for the deregulation to go reverse direction? Since the renewable generation anywhere is the cheapest, are the local laws and polices are the reasons behind the deregulation success or failure?
An interesting file is attached.
Dear Dr. Siddiqui, do you think that the deregulation will continue an only theoretical dream, with no practical realization?
Dear Mr. Sadiq, also in my country, electricity price has some how increased. But may be for our countries, the reason is that still there is no a considerable share of renewable energy.
In 'Network industries and social welfare (OUP 2013) and in several papers in energy journals we show that reforms, particularly of electricity, in the EU -15 have failed to offer lower prices to residential users, and sometimes resulted in higher prices for certain disadvantaged households (the issue of 'fuel poverty'). Unbundling is not a free lunch, and de facto competition is limited because elements of natural monopoly in the network, of economies of scale in generation, and incentives to collude among oligopolistis are still there, compounded with regulatory and policy trade offs arising from objectives of decarbonisation, stability of the systes, etc
Look at
“The U.S. Electricity Industry After 20 Years of Restructuring”, forthcoming in Annual Review of Economics, 2015, 7 (joint with James Bushnell) by Severin Borenstein.
http://faculty.haas.berkeley.edu/borenste/