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Electricity Retailing in Norway

  • Nils-Henrik M. von der Fehr
  • Petter Vegard Hansen

We analyze retailer and household behavior on the Norwegian electricity market, based on detailed information on prices and other market characteristics. We find that there exists a competitive market segment where a number of retailers compete fiercely for customers, with small margins on all products. However, we also find indications of monopolistic behavior, whereby retailers exploit the passivity of some of their customers. We discuss potential explanations for these results.

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Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume 31 (2010)
Issue (Month): Number 1 ()
Pages: 25-46

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Handle: RePEc:aen:journl:2010v31-01-a02
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  1. Nils-Henrik M. von der Fehr, Eirik S. Amundsen and Lars Bergman, 2005. "The Nordic Market: Signs of Stress?," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 71-98.
  2. Littlechild, S., 2005. "Competition and contracts in the Nordic Residential Electricity Markets," Cambridge Working Papers in Economics 0550, Faculty of Economics, University of Cambridge.
  3. Giulietti, Monica & Otero, Jesus & Waterson, Michael, 2007. "Pricing behaviour under competition in the UK electricity supply industry," The Warwick Economics Research Paper Series (TWERPS) 790, University of Warwick, Department of Economics.
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  5. Evens SALIES & Catherine WADDAMS PRICE, 2005. "Charges, Costs and Market Power: the Deregulated UK Electricity Retail Market," Industrial Organization 0508010, EconWPA.
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  10. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
  11. Amundsen, Eirik S. & Bergman, Lars, 2006. "Why has the Nordic electricity market worked so well?," Utilities Policy, Elsevier, vol. 14(3), pages 148-157, September.
  12. Ingo Vogelsang, 2004. "Book Reviews - Competition in European Electricity Markets: A Cross-Country Comparison," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
  13. Torstein Bye & Einar Hope, 2005. "Deregulation of electricity markets—The Norwegian experience," Discussion Papers 433, Statistics Norway, Research Department.
  14. Ole Jess Olsen & Klaus Skytte, 2003. "Competition and Market Power in Northern Europe," Chapters, in: Competition in European Electricity Markets, chapter 7 Edward Elgar.
  15. Paul Joskow & Jean Tirole, 2006. "Retail electricity competition," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 799-815, December.
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  17. Klemperer, Paul, 1995. "Competition When Consumers Have Switching Costs: An Overview with Applications to Industrial Organization, Macroeconomics, and International Trade," Review of Economic Studies, Wiley Blackwell, vol. 62(4), pages 515-39, October.
  18. Eirik S. Amundsen & Lars Bergman, 2003. "The Deregulated Electricity Markets in Norway and Sweden: A Tentative Assessment," Chapters, in: Competition in European Electricity Markets, chapter 5 Edward Elgar.
  19. Waterson, Michael, 2003. "The role of consumers in competition and competition policy," International Journal of Industrial Organization, Elsevier, vol. 21(2), pages 129-150, February.
  20. Paul L. Joskow, 2003. "The Difficult Transition to Competitive Electricity Markets in the U.S," Working Papers 0308, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
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  22. Flaim, Theresa, 2000. "The Big Retail "Bust": What Will It Take to Get True Competition?," The Electricity Journal, Elsevier, vol. 13(2), pages 41-54, March.
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  24. repec:rje:randje:v:37:y:2006:i:4:p:799-815 is not listed on IDEAS
  25. Littlechild, S.C., 2000. "Why We Need Electricity Retailers: A Reply to Joskow on Wholesale Spot Price pass-through," Cambridge Working Papers in Economics 0008, Faculty of Economics, University of Cambridge.
  26. Evens Salies & Catherine Waddams Price, 2004. "Charges, Costs and Market Power: the Deregulated UK Electricity Retail Market," Post-Print hal-01020109, HAL.
  27. Atle Midttun & Joar Handeland & Terje Omland, 2003. "The Nordic Public Ownership Model Under Transition to Market Economy: The Case of Electricity," Chapters, in: Competition in European Electricity Markets, chapter 6 Edward Elgar.
  28. Olsen, Ole Jess & Johnsen, Tor Arnt & Lewis, Philip, 2006. "A Mixed Nordic Experience: Implementing Competitive Retail Electricity Markets for Household Customers," The Electricity Journal, Elsevier, vol. 19(9), pages 37-44, November.
  29. Monica Giulietti & Catherine Waddams Price & Michael Waterson, 2005. "Consumer Choice and Competition Policy: a Study of UK Energy Markets," Economic Journal, Royal Economic Society, vol. 115(506), pages 949-968, October.
  30. Amundsen, Eirik S. & Bergman, Lars, 2007. "Integration of multiple national markets for electricity: The case of Norway and Sweden," Energy Policy, Elsevier, vol. 35(6), pages 3383-3394, June.
  31. Chris M. Wilson & Catherine Waddams Price, 2005. "Irrationality in Consumers’ Switching Decisions: When More Firms May Mean Less Benefit," Industrial Organization 0509010, EconWPA.
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