Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/19247
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dc.date.accessioned2017-05-19T08:21:34Z
dc.date.available2017-05-19T08:21:34Z
dc.date.issued2004
dc.identifier.citationFalzon, J. (2004). The effects of weather and fuel oil shocks on Enemalta’s profits. Bank of Valletta Review, 29 (Spring), 16-26.en_GB
dc.identifier.urihttps://www.um.edu.mt/library/oar//handle/123456789/19247
dc.description.abstractSeveral electricity companies, including Enemalta, face a regulated maximum consumer price on the electric units they produce and supply on the market. This regulated consumer price gives rise to financial losses for the electricity company because it causes a divergence between the unit cost and the consumer price of each unit of electricity demanded and supplied. Unexpected changes in temperature increase the demand for electricity at the regulated price and cause even larger financial losses for the electricity company. Similarly, unexpected increases in fuel oil costs increase the production cost per electric unit and also widen the financial losses for the electricity company. The long history in Malta of political regulation and social intervention in the electricity market, make it very difficult to transform the regulated consumer price into a market clearing equilibrium one. This paper argues that the only option for the electricity company is to use derivatives to insure away the financial losses brought about by unexpected temperature and fuel oil shocks.en_GB
dc.language.isoenen_GB
dc.publisherBank of Vallettaen_GB
dc.rightsinfo:eu-repo/semantics/openAccessen_GB
dc.subjectFuel -- Prices -- Maltaen_GB
dc.subjectElectric power consumption -- Maltaen_GB
dc.subjectPower resources -- Maltaen_GB
dc.titleThe effects of weather and fuel oil shocks on Enemalta’s profitsen_GB
dc.typearticleen_GB
dc.rights.holderThe copyright of this work belongs to the author(s)/publisher. The rights of this work are as defined by the appropriate Copyright Legislation or as modified by any successive legislation. Users may access this work and can make use of the information contained in accordance with the Copyright Legislation provided that the author must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the prior permission of the copyright holder.en_GB
dc.description.reviewedN/Aen_GB
dc.contributor.creatorFalzon, Joseph
Appears in Collections:Scholarly Works - FacEMABF

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