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%), according to values reported for other markets. Second, the long-term elasticity is 0.1443%. And finally, the adjusment coeficient to long-term imbalances of the model is 1.68%, while the same value for the short-term model is 3.10%; this imply a better adjustment of the error correction model for electricity consumption.