Pricing behaviour under competition in the UK electricity supply industry

Monica Giulietti, Jesus Otero and Michael Waterson

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: This paper investigates the evolution of electricity prices for domestic customers in the UK following the introduction of competition. The empirical analysis is based on a panel data set containing detailed information about electricity supply prices over the period 1999 to 2006. The analysis aims to test theoretical hypotheses about the nature of consumers’ switching and search costs. The econometric analysis of persistence and price dispersion provides only limited support for the view that the market is becoming more competitive and also indicates that there remain significant potential benefits to consumers from searching alternative suppliers.

Keywords: electricity supply; price competition; convergence; dynamic panels; crosssectional dependency (search for similar items in EconPapers)
JEL-codes: C22 C23 L13 L43 L94 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2007
New Economics Papers: this item is included in nep-com, nep-ene, nep-ind and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: Pricing behaviour under competition in the UK electricity supply industry (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:790

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