We propose in this paper a model for the description of electricity spot prices, which we use to describe the dynamics of forward curves. The spot price model is based on a long-term/short-term decomposition, where the price is thought of as made up of two factors: A long-term equilibrium level...

The recent proposals for the acquisition of Endesa by Gas Natural and E.On has raised a considerable debate. One of the interesting issues under discussion is whether the resulting entity will be too large for the market or not, in terms of its potential exercise of market power and, in this...

Forward transactions are becoming increasingly important in most of electricity markets. In this view, this paper develops a methodology able to capture the complexities of power markets and incorporate them into the framework of risk-neutral probabilities. This is done by the statement of a...

In September 5th, 2005 Gas Natural, the major natural gas Spanish incumbent, launched a bid for Endesa, the major electricity incumbent. The bid arises complex issues, because of potential horizontal and vertical anti-competitive effects analysis, as well as that of the proposed remedies. One...

Most popular approaches for modeling electricity prices rely at present on microeconomics rationale. They aim to study the interaction between decisions of agents in the market, and usually represent the impact of uncertainty in such decisions in a simplified way. The usual methodology of...