3 ms·
the OP meant that the producer is allowed to sell to the higher priced exchange, rather than being forced to sell it at a low price to the consumer. Therefore,
by chii 4y ago
the OP meant that the producer is allowed to sell to the higher priced exchange, rather than being forced to sell it at a low price to the consumer. Therefore, the OP is assuming that someone at the exchange is going to profit nicely without having done any work by arbitraging the sale of electricity.
- im3w1l 4y agoI'm guessing that the missing variable is "cost plus" pricing for consumers? By selling the electricity on the market and then buying it back they can increase the price for consumer.