Consumer governance in electricity markets

Toby Daglish

Energy Economics, 2016, vol. 56, issue C, 326-337

Abstract: This paper examines switching decisions by households in the MainPower distribution area of New Zealand. The paper measures the extent to which customers switch retailers following the release of information about directors' bonuses, marketing surrounding firm ownership, and work by the New Zealand Electricity Authority to promote transparency of the switching process. We document strong customer inertia, which, for some consumers, has reduced following the Electricity Authority's interventions. Customer movements following information releases and marketing campaigns are modest, suggesting that prices and inertia may be the most important drivers of customer migration.

Keywords: Electricity retail; Switching behaviour; Customer inertia; Price sensitivity (search for similar items in EconPapers)
JEL-codes: C35 M31 M38 Q41 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:56:y:2016:i:c:p:326-337

DOI: 10.1016/j.eneco.2016.03.018

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