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Non-discrimination Clauses: Their Effect on British Retail Energy Prices

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  • Catherine Waddams Price
  • Minyan Zhu

Abstract

UK governments and the energy regulator have shown increasing concern about the health of competition in the residential energy market, following their pioneering deregulation at the end of the last century. We identify the effects of introducing the non-discrimination clauses in 2009, a major regulatory intervention and the first since deregulation. We explore the effect of this intervention on the price movements of the six major players, and find that the nature of competition in the industry has changed, with less effective rivalry between the regional incumbents and large regional competitors following the intervention; companies seem to have ‘retreated’ to their home regions, leaving a market where pricing behaviour resembles more closely a duopoly between British Gas and the regional incumbent.

Suggested Citation

  • Catherine Waddams Price & Minyan Zhu, 2016. "Non-discrimination Clauses: Their Effect on British Retail Energy Prices," The Energy Journal, , vol. 37(2), pages 111-132, April.
    • Handle: RePEc:sae:enejou:v:37:y:2016:i:2:p:111-132
    DOI: 10.5547/01956574.37.2.cpri
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    References listed on IDEAS

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    3. Evens Salies & Catherine Waddams Price, 2004. "Charges, Costs and Market Power: the Deregulated UK Electricity Retail Market," The Energy Journal, , vol. 25(3), pages 19-35, July.
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    Cited by:

    1. Paul Simshauser, 2022. "The 2022 energy crisis: horizontal and vertical impacts of policy interventions in Australia's national electricity market," Working Papers EPRG2216, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    2. Chen, Huanhuan & Li, Jinke & O'Leary, Nigel & Shao, Jing, 2025. "Higher prices in a more competitive market: The paradox in the retail electricity market in the United Kingdom," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 374-390.

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