Modified Pricing Model for Energy Exchanges

The German electricity market has changed from monopoly to oligopoly and is currently dominated by four leading electricity providers. Thus, it can be hardly argued that the German market represents the ideal vision the EU might had when introducing the electricity directive in 1996. In this paper the influences responsible for the dramatic raise of the wholesale prices for electricity in Germany are analysed. Thereafter the important role of the German electricity exchange as "price indicator" is explained. An alternative pricing model is proposed in order to improve the conditions especially for industrial consumers of electricity. Thereby current results of a study done by the institute of energy, business and technology (IEBT) are used