‘Trading Flexibility in Power Markets’

We are rounding off our Autumn seminar series in style on Friday 18th December, where our esteemed guest Peter Møllgaard (Copenhagen Business School) will present ‘Trading Flexibility in Power Markets‘. Peter is both a Professor of Industrial Organization and Head of the CBS Department of Economics. His main research interests lie in the application of industrial economics to competition policy, and he has published on a wide array of topics (including mergers, dominance, and damages claims). An abstract for his paper can be found below.

Abstract

Due to increased amounts of renewable energy supply, power markets increasingly value flexibility, i.e., the possibility to modify generation or demand within a timescale ranging from minutes to hours in response to variability. We set up an economic model of bilateral trade between a prosumer that offers to sell flexibility to an aggregator who, in turn, resells this flexibility in a marketplace. We show that flexibility trading is welfare enhancing as long as a transaction-cost reducing technology is in place.

The seminar takes place from 13:00-14:00 in the Thomas Paine Study Centre, Room 1.03. Tea will be provided directly afterwards in the MBA Café (TPSC, Floor 2).

This is the final CCP seminar of the Autumn semester, but we will return in January 2016 with more cutting-edge commentary from the world of competition policy and regulation. You can keep up-to-date with our future seminars by visiting the designated pages on our website.

‘Reconceptualising deterrence within competition policy’

Only three more sessions remain in our Autumn seminar series, including the tantalising prospect of some distinguished guest speakers. On Friday 11th December, we are delighted to welcome back the ever-enthralling Jonathan Galloway (Newcastle Law School), who presented at our Annual Conference back in 2007. Jonathan is a Senior Lecturer in Law at Newcastle University and an expert in Competition Law. His research interests include the intersections of competition law (particularly its relationship with politics, innovation, and industrial policy), international convergence, and cooperation between competition authorities.

Jonathan will be presenting one of his current research projects, entitled ‘Reconceptualising deterrence within competition policy‘. An abstract for his paper can be found below.

Abstract

Competition authorities, and the politicians who hold them to account, primarily rely upon deterrence theory in order to achieve their objective of preventing anti-competitive behaviour. Broad trends of increased severity of sanctions, particularly for cartel behaviour, are easily observable and yet it is far from clear that the deterrence led approach is effective. Heightened severity of sanctions, and heightened probability of sanction, facilitated in part through the operation of leniency, ought to prevent recidivism and also lead to lower levels of infringements as part of a successful deterrence strategy, yet there is little evidence to suggest this is taking place. Efforts to ‘double down’ on deterrence through introducing individual sanctions in jurisdictions such as the UK can be useful but are unlikely to provide a complete answer in order to prevent anti-competitive behaviour. This paper will argue that deterrence should continue to be an important driver of competition authorities’ enforcement strategy, but that it should be framed within an overarching strategy of regulatory compliance, which affords greater priority to individual accountability, and embraces insights from behavioural economics in order to foster the creation of a competition culture and so as to align the incentives between corporation and individual.

The seminar takes place from 13:00-14:00 in the Thomas Paine Study Centre, Room 1.03. Tea will be provided directly afterwards in the MBA Café (TPSC, Floor 2).

‘You: The Problem in Energy Policy’

The Autumn Seminar Series continues on Friday 4th December with the delightful Elizabeth Errington (CCP and PPL) presenting ‘You: The Problem in Energy Policy‘. Liz is a PhD student in the School of Politics, Philosophy, Language and Communications Studies, where she researches a host of issues, including energy policy, consumers and affordability. An abstract for her presentation can be found below.

Abstract

The challenge of delivering affordable, sustainable and secure energy supplies continues to keep energy policy firmly on the agenda. However, despite consistent focus by practitioners and researchers the processes and results of the formulation of these policies still remains largely unknown.

Many factors ensure policy formulation generally and energy policy specifically is opaque. These include the multiple and interlinked roles of actors and policy venues, the role of an economic regulator and the activities of firms (with the associated need for commercial confidentiality). In addition to the complexity of the processes themselves, energy policy formulation is opaque due to these processes occurring largely ‘behind closed doors’.

This presentation will outline the research opportunities of using the way ‘problems’ are identified, conceptualized and represented to provide important insights into the opaque world of energy policy formulation. This will be illustrated using the initial findings from one year of a PhD study.

The findings so far? The problem is you.

The seminar will take place from 13:00-14:00 in Room 1.03 of the Thomas Paine Study Centre.