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Effective Paths for Consumer Empowerment and Protection in Retail Energy Markets

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  • Maria Ioannidou

    (Queen Mary University of London)

Abstract

Consumer empowerment and protection are frequently discussed in contemporary energy policy debates. The process of consumer empowerment through information and consumer education has great potential, yet consumer switching as the concomitant outcome of this process remains low. Additional protection for vulnerable consumers is called for. This article is centred on the path to achieving consumer empowerment and protection. In particular, it stresses that empowerment should be viewed as a long-term process. Regulators should not focus on the mere outcome of switching and adopt remedies aimed at changing consumer behaviour in the short term. The discussion highlights how attempts to protect vulnerable consumers through an ancillary application of competition law distort the competitive process and should be avoided. Personal vulnerabilities, such as low income, can be better tackled with targeted social policy measures, whereas instances of vulnerabilities pertaining to the market context, such as difficulties in assessing different energy offers, are better phased out through the market mechanism.

Suggested Citation

  • Maria Ioannidou, 2018. "Effective Paths for Consumer Empowerment and Protection in Retail Energy Markets," Journal of Consumer Policy, Springer, vol. 41(2), pages 135-157, June.
    • Handle: RePEc:kap:jcopol:v:41:y:2018:i:2:d:10.1007_s10603-018-9372-5
    DOI: 10.1007/s10603-018-9372-5
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    References listed on IDEAS

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    1. Catherine Waddams Price, 2005. "The Effect of Liberalizing UK Retail Energy Markets on Consumers," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(1), pages 128-144, Spring.
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    4. Stephen Littlechild, 2014. "The competition assessment framework for the retail energy sector: some concerns about the proposed interpretation," Cambridge Working Papers in Economics 1426, Faculty of Economics, University of Cambridge.
    5. Marija Bartl, 2010. "The Affordability of Energy: How Much Protection for the Vulnerable Consumers?," Journal of Consumer Policy, Springer, vol. 33(3), pages 225-245, September.
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    Cited by:

    1. Bedggood, Rowan & Russell-Bennett, Rebekah & McAndrew, Ryan & Glavas, Charmaine & Dulleck, Uwe, 2023. "Challenging the social-power paradigm: Moving beyond consumer empowerment to an energy ecosystem of shared value," Energy Policy, Elsevier, vol. 173(C).
    2. Guido Pepermans, 2019. "European energy market liberalization: experiences and challenges," International Journal of Economic Policy Studies, Springer, vol. 13(1), pages 3-26, January.
    3. Florian Hanke & Jens Lowitzsch, 2020. "Empowering Vulnerable Consumers to Join Renewable Energy Communities—Towards an Inclusive Design of the Clean Energy Package," Energies, MDPI, vol. 13(7), pages 1-27, April.

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