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Competitive retail electricity market under continuous price regulation

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  • Tsai, Chen-Hao
  • Tsai, Yi-Lin

Abstract

The introduction of retail competition in various states in United States was expected to lower electricity bills, expand the choice set of consumers, and encourage horizontal differentiation by providing value-added services. However, to date, most regulators in states with retail choice often maintain their interventions on retail electricity rates, particularly for residential consumers. In this paper, we use data from the State of Connecticut as a case study to describe a competitive retail electricity market under continuous price regulation, and discuss policy implications.

Suggested Citation

  • Tsai, Chen-Hao & Tsai, Yi-Lin, 2018. "Competitive retail electricity market under continuous price regulation," Energy Policy, Elsevier, vol. 114(C), pages 274-287.
    • Handle: RePEc:eee:enepol:v:114:y:2018:i:c:p:274-287
    DOI: 10.1016/j.enpol.2017.12.012
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    References listed on IDEAS

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    1. Xuejuan Su, 2015. "Have customers benefited from electricity retail competition?," Journal of Regulatory Economics, Springer, vol. 47(2), pages 146-182, April.
    2. Agustin J. Ros, 2017. "An Econometric Assessment of Electricity Demand in the United States Using Utility-specific Panel Data and the Impact of Retail Competition on Prices," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
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    4. Swadley, Adam & Yücel, Mine, 2011. "Did residential electricity rates fall after retail competition? A dynamic panel analysis," Energy Policy, Elsevier, vol. 39(12), pages 7702-7711.
    5. Littlechild, Stephen, 2009. "Retail competition in electricity markets -- expectations, outcomes and economics," Energy Policy, Elsevier, vol. 37(2), pages 759-763, February.
    6. Ali Hortaçsu & Seyed Ali Madanizadeh & Steven L. Puller, 2017. "Power to Choose? An Analysis of Consumer Inertia in the Residential Electricity Market," American Economic Journal: Economic Policy, American Economic Association, vol. 9(4), pages 192-226, November.
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    8. Kang, Linhong & Zarnikau, Jay, 2009. "Did the expiration of retail price caps affect prices in the restructured Texas electricity market?," Energy Policy, Elsevier, vol. 37(5), pages 1713-1717, May.
    9. Defeuilley, Christophe, 2009. "Retail competition in electricity markets," Energy Policy, Elsevier, vol. 37(2), pages 377-386, February.
    10. Daglish, Toby, 2016. "Consumer governance in electricity markets," Energy Economics, Elsevier, vol. 56(C), pages 326-337.
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    Citations

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    Cited by:

    1. Esplin, Ryan & Davis, Ben & Rai, Alan & Nelson, Tim, 2020. "The impacts of price regulation on price dispersion in Australia's retail electricity markets," Energy Policy, Elsevier, vol. 147(C).
    2. Wakiyama, Takako & Zusman, Eric, 2021. "The impact of electricity market reform and subnational climate policy on carbon dioxide emissions across the United States: A path analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    3. Massimo Dragotto & Marco Magnani & Paola Valbonesi, 2021. "Consumer inertia and firm incumbency in liberalised retail electricity markets: an empirical investigation," "Marco Fanno" Working Papers 0277, Dipartimento di Scienze Economiche "Marco Fanno".
    4. Jia, Zhijie & Lin, Boqiang, 2023. "Primary fossil energy cost and price regulation in energy processing sectors---the perspective of price regulation market with Chinese characteristics," Resources Policy, Elsevier, vol. 83(C).
    5. Chen Zhao & Jiaqi Sun & Ping He & Shaohua Zhang & Yuqi Ji, 2023. "Integrating Risk Preferences into Game Analysis of Price-Making Retailers in Power Market," Energies, MDPI, vol. 16(8), pages 1-18, April.

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    More about this item

    Keywords

    L81; L94; Q49; Electricity market; Retail choice; Standard Service;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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