Pass-through in Colombia’s Unregulated Retail Electricity Market

Authors

DOI:

https://doi.org/10.32479/ijeep.13086

Keywords:

Pass-through, Electricity markets, Wholesale costs, Retail prices

Abstract

This study analyzes the pass-through of wholesale costs to retail prices for unregulated users in the Colombian electricity market, using monthly data from 2012 to 2019. This period encompasses moments with and without an El Niño phenomenon. We use an empirical model to analyze the pass-through heterogeneity according to the characteristics of users and firms, showing that the pass-through is incomplete, differs according to the presence of El Niño, and is heterogeneous. The pass-through was greater from September 2015 to May 2016 because an El Niño caused hydrological resource scarcity and several critical thermal plants halted operations. In other words, the pass-through tends to be more comprehensive during an El Niño event. Additionally, the pass-through differs between firms with a high concentration of the market and the remaining firms and between urban and non-urban users.

Downloads

Download data is not yet available.

Downloads

Published

2022-07-20

How to Cite

Perez, A., Carabali, J., & Meneses, L. (2022). Pass-through in Colombia’s Unregulated Retail Electricity Market. International Journal of Energy Economics and Policy, 12(4), 575–583. https://doi.org/10.32479/ijeep.13086

Issue

Vol. 12 No. 4 (2022)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.