PRIMER: Managing electricity price volatility

Deregulation has forced those in the electricity market to hedge against huge price volatility. Kerry Liu looks at how it's done.
PRIMER: Managing electricity price volatility
By Kerry Liu
Feb 4, 2013
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The deregulation of electricity markets has led to high volatility in electricity prices since governments started privatising their systems from the mid-1980s. For example, rampant price manipulation by electricity companies in Australia’s National Electricity Market (NEM) caused the wholesale price of electricity to vary from $30 per unit to $10,000 per unit in 2006.

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