Non-discrimination clauses in the retail energy sector

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Hviid, Morten and Waddams Price, Catherine (2012) Non-discrimination clauses in the retail energy sector. The Economic Journal, 122 (562). F236-F252. ISSN 1468-0297

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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: Article
Uncontrolled Keywords: competition (economics),energy market,energy policy,numerical model,regulatory approach,sdg 7 - affordable and clean energy ,/dk/atira/pure/sustainabledevelopmentgoals/affordable_and_clean_energy
Faculty \ School: Faculty of Social Sciences > Norwich Business School
Faculty of Social Sciences > School of Law
UEA Research Groups: Faculty of Social Sciences > Research Groups > Competition, Markets and Regulation
Faculty of Medicine and Health Sciences > Research Centres > Business and Local Government Data Research Centre (former - to 2023)
Faculty of Social Sciences > Research Groups > Media, Information Technology and Intellectual Property Law
Faculty of Social Sciences > Research Centres > Centre for Competition Policy
Faculty of Social Sciences > Research Groups > Responsible Business Regulation Group
Depositing User: Catherine Waddams
Date Deposited: 19 Apr 2011 14:03
Last Modified: 19 Dec 2024 00:39
URI: https://ueaeprints.uea.ac.uk/id/eprint/29626
DOI: 10.1111/j.1468-0297.2012.02537.x

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