HOW THE ELECTRICITY MARKET PRICES ARE SET?
We constantly see how the electricity bill fluctuates, but this is nothing more than a reflection of the price of electricity. The question is: how the electricity market prices are set? How is the price of electricity decided? In our country this is done through a formula known as a marginalist market. THE FORMULA OF THE MARGINALIST MARKET The way in which electricity market prices are decided is simple. The highest price is chosen. The last plant that is needed to satisfy the demand is the one that establishes how much will be paid to the others. Nuclear power and hydro power are the first to enter the daily electricity market, also known as pool, and offer zero to have […]
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