Wholesale electricity prices can rapidly change in real-time, yet households usually face fixed-price electricity tariffs. Therefore, households that predominantly use energy when wholesale prices are low implicitly cross-subsidize households whose energy use is more weighted to high-price...

This paper is a technical report commissioned by Energy Consumers Australia, a statutory advocacy institution, as to the state of the electricity market in Australia. Using standard tools of economics, it finds that the combination of market power, vertical integration and a poor regulatory...