Wholesale Energy

AAA

DEFINITION of 'Wholesale Energy '

A term referring to the purchase and sale of energy products – primarily electricity, but also steam and natural gas – in the wholesale market by energy producers and energy retailers. Other participants in the wholesale energy market include financial intermediaries, energy traders and large consumers. Wholesale energy markets developed following the deregulation and restructuring of utilities and electricity markets around the world in the 1990s.

INVESTOPEDIA EXPLAINS 'Wholesale Energy '

There are independent system operators that coordinate, control and monitor the operation of the energy market. The deregulation of electricity markets and the development of wholesale energy markets have provided end-user benefits such as enhanced reliability, efficient grid dispatch and better price transparency. However, detractors of the wholesale energy concept maintain that it may actually lead to higher prices for retail consumers and can cause artificial shortages such as the California energy crisis of 2000-2001 due to market manipulation.

RELATED TERMS
  1. Federal Energy Regulatory Commission ...

    An independent agency responsible for regulating interstate oil ...
  2. Deregulation

    The reduction or elimination of government power in a particular ...
  3. Spark Spread

    The difference between the market price of electricity and its ...
  4. Utilities Sector

    A category of stocks for utilities such as gas and power. The ...
  5. Energy Derivatives

    A derivative instrument in which the underlying asset is based ...
  6. Benchmark Crude Oil

    Benchmark crude oil is crude oil that serves as a pricing reference, ...
Related Articles
  1. 10 Ways To Save Energy And Money
    Personal Finance

    10 Ways To Save Energy And Money

  2. Fueling Futures In The Energy Market
    Options & Futures

    Fueling Futures In The Energy Market

  3. Losing The Amaranth Gamble
    Retirement

    Losing The Amaranth Gamble

  4. Understanding Benchmark Oils: Brent ...
    Investing Basics

    Understanding Benchmark Oils: Brent ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center