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Household electricity contract and provider switching in the EU

Author

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  • Schleich, Joachim
  • Faure, Corinne
  • Gassmann, Xavier

Abstract

Using a representative sample of more than 11,000 households from eight Eu-ropean countries, this paper empirically studies the factors related to household electricity contract switching by distinguishing between households that switched contracts but stayed with the same supplier (internal switching) from those that switched to a new supplier (external switching). The econometric analysis includes a wide range of individual preferences, structural factors, and socio-demographic characteristics; in particular, it is the first paper to explicitly explore the role of time and risk preferences on switching behaviors. The main results suggest that internal and external switching are not related to the same factors, that risk and time preferences affect switching behaviors, and that renters are less likely to switch than homeowners.

Suggested Citation

  • 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).
  • Handle: RePEc:zbw:fisisi:s142017
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    References listed on IDEAS

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    Cited by:

    1. Fontana, Magda & Iori, Martina & Nava, Consuelo Rubina, 2019. "Switching behavior in the Italian electricity retail market: Logistic and mixed effect Bayesian estimations of consumer choice," Energy Policy, Elsevier, vol. 129(C), pages 339-351.
    2. Muyi Yang & Yuanying Chi & Kristy Mamaril & Adam Berry & Xunpeng Shi & Liming Zhu, 2020. "Communication-Based Approach for Promoting Energy Consumer Switching: Some Evidence from Ofgem’s Database Trials in the United Kingdom," Energies, MDPI, Open Access Journal, vol. 13(19), pages 1-16, October.

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    Keywords

    electricity supplier switching; inertia; liberalization; time preferences; risk preferences;
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