Switching Energy Suppliers: It’s Not All About the Money

David Deller, Monica Giulietti, Graham Loomes, Catherine Waddams Price, Anna Moniche and Joo Young Jeon

The Energy Journal, 2021, vol. 42, issue 3, 1-26

Abstract: Many consumers do not take advantage of lower energy prices available in liberalized retail markets. We provide evidence to explain why consumers may leave substantial amounts of “money on the table†in this way. We observe real decisions made by over 7,000 consumers in a collective switching auction, supplemented by their responses to a survey. We identify factors which may inhibit switching and show that expectations of high switching rates in an unregulated market may be unrealistic. Our findings have important implications for the design and regulation of energy markets, including imposition of price caps on “default†retail tariffs in 2019 in the UK and parts of Australia.

Keywords: Retail energy market; Switching suppliers; Probit models; Behavioral consumers (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5547/01956574.42.3.ddel (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:42:y:2021:i:3:p:1-26

DOI: 10.5547/01956574.42.3.ddel

Access Statistics for this article

More articles in The Energy Journal
Bibliographic data for series maintained by SAGE Publications ().