Analysis of Retail Electricity Prices in the Czech Republic

Abstract

This paper presents an in-depth analysis of retail electricity prices in the Czech Republic, emphasizing their volatility and dependence on wholesale market mechanisms. The study develops a computational model to estimate the composition of wholesale electricity prices from the retail prices offered by suppliers. The research incorporates historical price trends, various trading strategies, and market structures to evaluate the stability and sustainability of retail pricing. The practical part of this study applies MATLAB-based calculations to assess whether electricity suppliers are sufficiently hedged against market fluctuations, ensuring their ability to meet customer demands. The findings contribute to the understanding of electricity pricing structures and highlight the importance of regulatory measures in mitigating price volatility.