Competition and contracts in the Nordic Residential Electricity Markets

Stephen Littlechild

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: The main Nordic residential electricity markets (Norway, Sweden and Finland) effectively opened to retail competition around 1998. They have not been subject to regulatory controls on prices or other contract terms. Between 11 and 29 per cent of residential customers have switched suppliers and between a fifth and a half of all residential customers have chosen alternative contractual terms of supply. These alternatives include fixed price contracts ranging from 3 months to five years duration, as well as spot-price related terms, instead of the standard variable tariffs. The use of these alternatives is increasing over time, and there is considerable product innovation. This paper surveys these developments and illustrates with case studies of significant suppliers in each Nordic market. The market is thus ascertaining and bringing about the outcomes that customers prefer. Without retail competition, it is not clear how regulation will replicate this aspect of the market process.

Keywords: retail competition; electricity; regulation; Nordic countries (search for similar items in EconPapers)
JEL-codes: L14 L51 L94 (search for similar items in EconPapers)
Pages: 36
Date: 2005-11
New Economics Papers: this item is included in nep-com, nep-eec, nep-ene, nep-ind, nep-mic and nep-reg
Note: EPRG, IO
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http://www.electricitypolicy.org.uk/pubs/wp/eprg0506.pdf (application/pdf)

Related works:
Journal Article: Competition and contracts in the Nordic residential electricity markets (2006)
Working Paper: Competition and contracts in the Nordic residential electricity markets (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:0550

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