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Do you pay a fair price for electricity? Consumers’ satisfaction and utility reform in the EU

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Author Info
Carlo Vittorio FIORIO ()
Massimo FLORIO ()

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Abstract

The research question addressed by this paper is a simple one: are European consumers happy with the electricity supply services after two decades of reforms? We focus on self-assessed consumers’ satisfaction with electricity prices as reported in three waves of Eurobarometer survey, 2000-2002-2004, conditioning on some indicators of public ownership, vertical integration and entry regulation across the EU-15. Our results do not support a systematic association between consumers’ satisfaction and the complete reform package made of privatisation, vertical disintegration and liberalisation. These results, which have been extensively tested for robustness, raise various concerns about the way the reform processes have been undertaken and provides some warnings about possible effects on public support for public utility reforms.

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File URL: http://www.economia.unimi.it/uploads/wp/Deas2008_12wp.pdf
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Publisher Info
Paper provided by Department of Economics University of Milan Italy in its series Departemental Working Papers with number 2008-12.

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Date of creation: 19 May 2008
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Handle: RePEc:mil:wpdepa:2008-12

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Related research
Keywords: Consumers’ satisfaction; electricity; privatisation; vertical disintegration; liberalisation;

Find related papers by JEL classification:
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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This page was last updated on 2009-11-26.


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