Example Energy Trading Questions

  1. Regulated vs deregulated
  2. Diversification vs volatility
  3. Prosumers
  4. Green bonds
  5. Supply chain disruption
  1. Market structure
  2. Energy sources
  3. Market participants
  4. Financial instruments
  5. Economic factors
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Regulated vs deregulated

What are the key differences between regulated and deregulated energy markets?

Hint

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Answer

In regulated markets, a single entity, usually a government-appointed or owned utility, controls the generation, transmission, and distribution of energy. Prices are set by regulatory bodies. In contrast, deregulated markets allow for competition among multiple generators and suppliers, with prices often determined by market forces. Deregulation aims to increase efficiency and lower prices through competition, though it requires robust regulatory oversight to ensure fair practices.