Event Date/Time: Nov 21, 2005
End Date/Time: Nov 22, 2005
Electricity markets are becoming increasingly competitive, with transactions being based more and more on prices set by market forces rather than regulation. In vertically integrated utilities, customers experienced stable rates determined by regulators based on the utility’s cost of providing electricity. Risks associated with rising fuel prices, unexpected changes in demand, etc., have been managed through excess capacity, cost-of-service regulation, fuel-adjustment clauses, and careful reviews. The regulatory structure encouraged utilities to invest heavily in capacity and measures to ensure reliability. Due to the open competition, many utilities have recognised the need to develop substantially stronger marketing and risk management skills so as to effectively compete with the new power marketers and brokers in the marketplace.