A Unifying Method to Supervise Market power in Bilateral-auction Electricity Market

Market power is a critical issue in the operation of bilateral-auction electricity market. Based on the definition of market power, two indicators of supervising market power, price offset index and wealth transfer yield rate, are proposed in this paper. These indicators can not only judge whether market participants exercise market power, but also judge market power's impact on market prices and profits gained by market power, providing regulators with guidance on market power supervision.