Experiences with energy prices in a deregulated market
- Stantec Consulting Ltd., Kitchener, Ontario (Canada)
The energy market was deregulated in Colombia back in 1994. Since then, an increasing share of energy has been traded at prices dictated essentially by market considerations, not always coherent with sound technical and commercial practices. This paper is based on the author`s experiences with the negotiation of a number of contracts for energy purchase between 1994 and 1997. It starts with a brief presentation of the Colombian power system, the key players and the structure of energy prices before the market was deregulated. An overview of the conditions that led to power shortages in 1992 is included. The document continues with the description of the operation of the Colombian deregulated energy market, as well as the available contracts and energy transactions. Then, the evolution of the energy bid prices submitted by different generating companies during the period 1994--1997 is developed in detail. The final part of the paper discusses the effects of the energy prices in the operation of the system; the financial impact for IPPs; the economic signals given to the market; and the overall performance of the national power system.
- Research Organization:
- Illinois Inst. of Tech., Chicago, IL (United States)
- OSTI ID:
- 696709
- Report Number(s):
- CONF-990410--PROC.-Vol.1
- Country of Publication:
- United States
- Language:
- English
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