This paper provides insight in the time-varying relation between electricity futures prices and fundamentals in the … marginal costs of production, we argue that the relation between electricity futures prices and futures prices of underlying … model that linearly relates electricity futures prices to the marginal costs of production and calculate the log …

electricity market. We also relate realized premiums to variables such as spot price levels, volatility, skewness and kurtosis … Australian electricity markets. Examining ex-post risk premiums in futures markets, we find positive and significant risk … premiums for several of the considered regions. Therefore, electricity futures prices cannot be considered as an unbiased …