The process of electricity production, distribution, and consumption represents a complex system with many heterogeneous characteristics. Physical constraints of the electricity, especially the difficulties with its storage, pose specific challenges on the structure of the power network and the...

A long line of research investigates whether the retail prices of electricity and natural gas send proper signals about scarcity in order to induce efficient consumption. Historically, regulated utilities have not designed tariffs that set marginal prices equal to marginal costs. Currently, some...

We analyze the pass-through of cost changes to retail tariffs in the German electricity market over the 2007 to 2014 period. We find an average pass-through rate of around 60%, which significantly varies with demand factors: while the pass-through rate to baseline tariffs, where firms have...