Taking away the electric shocks

Taking away the electric shocks

Understanding the cycle in power prices

Volatile commodity prices have long been observed and, in many sectors, accepted as a fact of life. Why then do episodes of high energy prices, such as we have experienced in 2005-06, make politicians so jittery? The characteristics of electricity and gas markets make them prone to cycles more pronounced, more local and seemingly more in need of intervention than other commodity markets. Should the urge to intervene be resisted?

Taking away the electric shocks