Price decoupling in a simple electricity market model with block and minimum income condition orders

We propose a simple market scenario with fill-or-kill, block and minimum income orders to test the effect of various clearing mechanisms in a computationally easy-to-handle environment. We consider two classical clearing-price based approaches as reference, which differ in the acceptance rules of block bids, and a novel clearing method, where we decouple demand and supply side prices. We show that if we apply price decoupling for, the total social welfare may be significantly increased.