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Electricity retail competition: the case of the UK

Author

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  • Raphaël Homayoun Boroumand
  • Phillip A. Cartwright

Abstract

The objective of liberalising electricity supply was to create competitive retail markets where asset-light suppliers would compete on price. This paper explores the quantitative and dynamic relationship between domestic retail prices and the wholesale price since one would expect a symmetric pattern with a stable and low retail margin. In this article, taking the UK market for analysis, a time-series approach is applied to calculate the extent and timing of pass through between wholesale and retail price variations. The preliminary results indicate that the impact effect and long-run effects from the wholesale to the retail market is quite low.

Suggested Citation

  • Raphaël Homayoun Boroumand & Phillip A. Cartwright, 2018. "Electricity retail competition: the case of the UK," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 41(1/2/3/4), pages 98-107.
    • Handle: RePEc:ids:ijgeni:v:41:y:2018:i:1/2/3/4:p:98-107
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