New method adjusts electricity prices based on supply and demand dynamics.
A new method for setting price caps in the electricity market has been developed. This method adjusts the price cap based on the balance between supply and demand, as well as the evaluation of market power. When there is enough supply and no market power abuse, the price cap allows competition to determine the market price. However, when supply is low or market power is being abused, the price cap decreases. This approach helps prevent financial risks from price spikes and maintains a fair competition in the electricity market.