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Consumer behaviour in the British retail electricity market

Author

Listed:
  • Miguel Flores

    (Centre for Competition Policy, University of East Anglia)

  • Catherine Waddams Price

    (Centre for Competition Policy, University of East Anglia)

Abstract

Using a unique specially generated data set, we show that the strength of the relationship between search and switching varies across groups of consumers with different attitudes and that the strongest driver of consumer activity is the anticipated gains from switching. The expected length and difficulty of the switching process has little deterrent effect, and factors such as internet use, employment and experience in other markets affect switching behaviour amongst only some groups. Policy makers need to identify these different incentives for various types of consumers if they are to develop effective instruments to stimulate consumer choice and activity.

Suggested Citation

  • Miguel Flores & Catherine Waddams Price, 2013. "Consumer behaviour in the British retail electricity market," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2013-10, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:ueaccp:2013_10
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Schleich, Joachim & Faure, Corinne & Gassmann, Xavier, 2017. "Household electricity contract and provider switching in the EU," Working Papers "Sustainability and Innovation" S14/2017, Fraunhofer Institute for Systems and Innovation Research (ISI).
    2. Simshauser, Paul & Whish-Wilson, Patrick, 2017. "Price discrimination in Australia's retail electricity markets: An analysis of Victoria & Southeast Queensland," Energy Economics, Elsevier, vol. 62(C), pages 92-103.
    3. Catherine Waddams Price & Catherine Webster & Minyan Zhu, 2013. "Searching and Switching: Empirical estimates of consumer behaviour in regulated markets," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2013-11, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    4. Nelson, Tim & McCracken-Hewson, Eleanor & Whish-Wilson, Patrick & Bashir, Stephanie, 2018. "Price dispersion in Australian retail electricity markets," Energy Economics, Elsevier, vol. 70(C), pages 158-169.
    5. Littlechild, S., 2020. "Online reviews and customer satisfaction: The use of Trustpilot by UK retail energy suppliers and three other sectors," Cambridge Working Papers in Economics 2086, Faculty of Economics, University of Cambridge.
    6. Catherine Waddams Price and Minyan Zhu, 2016. "Non-discrimination Clauses: Their Effect on British Retail Energy Prices," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    7. Catherine Waddams Price & Minyan Zhu, 2013. "Pricing in the UK retail energy market, 2005 - 2013," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2013-12, Centre for Competition Policy, University of East Anglia, Norwich, UK..

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    More about this item

    Keywords

    Switching Behaviour; Electricity Market; Competition Policy;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations

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