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SPARKing strategies

A model-based approach to electricity markets

In the 1990s, any market forecast of UK electricity prices which was based solely on industry costs would have been far too low. Strategic behaviour by incumbent electricity producers affects both the level and variation of wholesale prices, which in turn determine market risk, the value of contracts and investments, and the decisions of others to enter the market. Frontier's modelling approach can assist clients to take decisions based upon a formal analysis of these strategic issues.