Pricing Power in Whosesale Markets: A Risky Business

Deck: 
A Risky Business Utilities wrestle with how much to charge for their product.
Fortnightly Magazine - March 2004
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A Risky Business Utilities wrestle with how much to charge for their product.

The trading model has many good points, including the imposition of market discipline upon both transfer prices and prices to external third parties. Trading also encourages the use of resources and capital at their market value and the cultivation of specialized skills within different business units. But applying the model, particularly to the risks of power pricing, continues to be a challenge.

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