Determinants of the Relationship between Wholesale and Retail Energy Prices in the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F24%3APU152591" target="_blank" >RIV/00216305:26510/24:PU152591 - isvavai.cz</a>

Result on the web

<a href="https://actamont.tuke.sk/pdf/2024/n2/8pavlakova.pdf" target="_blank" >https://actamont.tuke.sk/pdf/2024/n2/8pavlakova.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.46544/AMS.v29i2.08" target="_blank" >10.46544/AMS.v29i2.08</a>

Result language

angličtina

Original language name

Determinants of the Relationship between Wholesale and Retail Energy Prices in the Czech Republic

Original language description

Rising energy prices have become a focus of interest for politicians at the international, European, and national levels. Energy prices are the main determinant of profitability or even the existence of the industrial sector. So, it is accepted that energy policy aims to ensure a secure, sustainable, competitive, and affordable energy supply for households and businesses. However, the recent geopolitical situation has significantly affected the energy policy of the European Union, raising concerns about energy security and an energy crisis. This crisis has had social, economic, and political consequences, including energy poverty. In this context, it is essential to understand the determinants of the relationship between wholesale and retail energy prices. This paper presents a model proposal to be used by the Czech Energy Regulatory Authority. The model of average retail prices depends on the type of contract - spot or forward, with the three-year forward contract having the largest weight on the retail price. Therefore, our study shows that long-term contracts significantly impact retail energy prices, highlighting the importance of regulatory monitoring of market strategies. Methodologically, the model is based on a multivariate regression analysis solved with the least absolute deviations and data for the period 2012 to 2023. The findings of the study contribute to a better understanding of the complexity of the dynamics of energy prices and support policymakers while attempting to ensure energy affordability and sustainability.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

20703 - Mining and mineral processing

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Acta Montanistica Slovaca

ISSN

1335-1788

e-ISSN

1339-3103

Volume of the periodical

29

Issue of the periodical within the volume

2

Country of publishing house

SK - SLOVAKIA

Number of pages

11

Pages from-to

332-342

UT code for WoS article

001362055200008

EID of the result in the Scopus database

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