Skip to Main content Skip to Navigation
Journal articles

Charges, Costs and Market Power: the Deregulated UK Electricity Retail Market

Abstract : The residential UK electricity market was opened for the first time in 1999, introducing choice of supplier, and about 40% of households changed supplier in the first four years. After three years price caps were removed. We review this process and assess the competitiveness of the market by examining how the charges levied by suppliers depend on cost and demand factors for three different payment methods and consumption levels. We also identify signs of additional market power of incumbency and the effect of levying a tariff with no fixed charge. We find that both cost and demand factors affect charges, and the relationship varies for different payment methods and consumption levels; and that tariffs with no fixed element have different effects for different payment methods. We also conclude that considerable market power seems to remain with potentially adverse distributional effects.
Document type :
Journal articles
Complete list of metadata

Cited literature [7 references]  Display  Hide  Download

https://hal-sciencespo.archives-ouvertes.fr/hal-01020109
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Monday, July 7, 2014 - 5:12:33 PM
Last modification on : Monday, April 4, 2022 - 6:36:03 PM
Long-term archiving on: : Tuesday, April 11, 2017 - 10:20:22 AM

File

wp2006-03.pdf
Explicit agreement for this submission

Identifiers

  • HAL Id : hal-01020109, version 1
  • SCIENCESPO : 2441/7189

Collections

Citation

Evens Salies, Catherine Waddams Price. Charges, Costs and Market Power: the Deregulated UK Electricity Retail Market. Energy Journal, International Association for Energy Economics, 2004, 25 (3), pp.19-35. ⟨hal-01020109⟩

Share

Metrics

Record views

72

Files downloads

605