Trade organization in the electric power market

This report presents an analysis of the trading function of the part of the Norwegian electric power market which is organized on the stock exchange, and its effect on the efficiency of the market. By ''trading function'' is meant the set of rules by which the latent supply and demand of the actors on the market are transformed into realized transactions. Recommendations are given for a possible reorganization of the trading function. In choosing between different trading systems the one with the expected minimum cost for the users should be chosen. This criterion has interesting implications for the organization of the present Norwegian power market, concerning such topics as choice of pricing system, clearance system and frequency, and publication of market information. 3 refs., 6 figs