Date

4-2010

Degree

Bachelor of Science in Electrical Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Roderick L. Catriz

Committee Member

Noah G. Badayos, John Paul P. Cua, Billy Jonh Q. Valdez

Abstract

Restructuring of the electricity market from a regulated form into an open-competition structure was lawfully implemented in the Philippines upon the approval of Electricity Power Industry Reform Act (EPIRA) of 2001EPIRA mandated the establishment of the Wholesale Electricity Spot Market (WESM)- an electricity market that would facilitate and would served as a venue for power transactions in real time. Although open-competition electricity market has been weighed to render better services and power transactions as opposed to a regulated one, however, susceptibility top system inefficiencies particularly top price manipulation is high.Price manipulation or market power has been extensively studied in electricity markets worldwide using various methodologies such as concentration index like Hirschmann-Herfindal (HHI) or Lerner Index which is a direct measure of market power. However, these measures are either not that informational as in the case of HHI or the data needed for the method are confidential as in the case for Lerner Index. The method used in this study on the other hand is a system level measurement that utilizes data readily available in the electricity market such as the demand turnover and electricity prices. The method is known the Conjectural Variation Approach or Bresnahan-Lau (BL) Model. BL measures the inefficiency by estimating the supply and demand relations of the electricity spot market. The model accounts for the short run and long run dynamics of the estimated functions.The model accounts for the short and long run dynamics of the estimated functions. The goal of this study is to measure run inefficiency of the electricity spot market for the period January 2007 to February 2009. The result indicates that the wholesale electricity spot market is approximately 93.141% efficient. However, the 6.859% inefficiency could not be directly accounted solely to price manipulation for there are considerations that will be cited in the discussion of the study that could possibly contributed to the outcome.

Language

English

Call Number

LG 993 2010 E64 M47

Document Type

Thesis

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