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[en] Market mechanisms: Under the current market mechanisms, generators submit their bids for supplying electricity one day before actual dispatch. Due to network constraints, imbalances appear, therefore penalties and benefits for imbalances are quite important matters. In order to effectively manage dispatch risks and to make more profitable bid strategies, generators have been driven towards assembling a diversified technology portfolio and integrating with retail businesses to ensure sufficient income and to mitigate credit risks. Large vertically integrated companies (active in both generation and retailing activities) have consequently emerged. Clearly, the current market mechanisms favour large power companies
Source
International Atomic Energy Agency, Planning and Economic Studies Section, Division of Planning, Information and Knowledge Management, Vienna (Austria); 154 p; ISBN 978-92-0-103916-3; 
; ISSN 1011-4289; ; May 2016; p. 69-71; Also available on-line: http://www-pub.iaea.org/MTCD/Publications/PDF/TE-1789_web.pdf; Enquiries should be addressed to IAEA, Marketing and Sales Unit, Publishing Section, E-mail: sales.publications@iaea.org; Web site: http://www.iaea.org/books
; ISSN 1011-4289; ; May 2016; p. 69-71; Also available on-line: http://www-pub.iaea.org/MTCD/Publications/PDF/TE-1789_web.pdf; Enquiries should be addressed to IAEA, Marketing and Sales Unit, Publishing Section, E-mail: sales.publications@iaea.org; Web site: http://www.iaea.org/books