Non-discrimination clauses in the retail energy sector

Hviid, Morten and Waddams, Catherine (2010) Non-discrimination clauses in the retail energy sector. Working Paper. Centre for Competition Policy.

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Abstract

The British Energy regulator will soon review a non-discrimination licence condition which it imposed to ensure that energy retailers charge the same mark-up in different regions. Many consumers are loyal to incumbent firms, necessitating heavy discounting by entrants to attract customers, which had led to regional price discrimination. Matching characteristics of the energy market to models of discrimination, we identify the necessary conditions for the licence condition to have a positive effect for consumers, and explore whether the policy has helped potentially „vulnerable? consumers. We conclude that the most likely effect of the licence condition is to reduce competition in the mainstream energy markets, and welcome the regulator?s latest review of the retail market.

Item Type: Monograph (Working Paper)
Faculty \ School: Faculty of Social Sciences > Norwich Business School
Faculty of Social Sciences > School of Law
Depositing User: Catherine Waddams
Date Deposited: 08 Apr 2011 09:00
Last Modified: 06 Sep 2020 23:53
URI: https://ueaeprints.uea.ac.uk/id/eprint/28412
DOI:

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