• Explains why analysis of strategic price risk is crucial in price risk forecasting

• Analysis of the likely impact of the new UK pool/market structure and implications of North European market structures for strategic price risks

Preface VII
Executive Summary IX

1: Electricity Markets are Different

2: The Persistence of Market Power
Introduction
Latent market power and market concentration
Latent market power in the UK duopoly
Comments on latent market power analysis

3: Simulating Dynamic Market Behaviour
Introduction
Computational details of the agent-based simulation model
Application to the England and Wales Pool

4: New Models for New Markets
Introduction
The agent-based simulation model
Simulation insights
Explaining the results
Conclusions

5: Market Structure Is Fundamental
Introduction
Using agent-based simulation
Analysis of the 1999 plant divestment issue in England and Wales
Summary and conclusions

6: Market Power in European Electricity
Lessons from the UK market
Development of EU electricity market legislation
Background to the liberalisation of the EU electricity market
Potential sources of residual market power
Mitigating the effects of market power
Conclusion

Appendix 1: Main Sources of Statistics1 Prices and Legislation
Appendix 2: Abbreviations and Acronyms

Derek W. Bunn is a Professor at London Business School, with research on the energy sector extending back more than 25 years. Author of over 180 research papers and 10 books in the areas of forecasting, decision analysis and energy economics, previously he was the Editor of Energy Economics, and has served on the editorial boards of 12 other journals including Management Science. He has advised many PhD students as well as numerous international companies and government agencies in this sector.