Calculation of Hourly Price-Demand Elasticity in the Colombian Electricity Market

In this article, the short and long term relationships between the electricity demand and the spot price ara analized for the period between years 2000 and 2014, using horary data. Our main findings are the following: first, short-term elastiticity between demand and the natural log of spot price is low (0.007 per cent), according to values reported for other markets. Second, the long-term elasticity is 0.1443 per cent. And finally, the adjusment coeficient to long-term imbalances of the model is 1.68 per cent, while the same value for the short-term model is 3.10 per cent; this imply a better adjustment of the error correction model for electricity consumption.