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Price Discrimination, Regulation and Entry in the UK Residential Electricity Market

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  • Otero, Jesus
  • Waddams Price, Catherine

Abstract

The residential electricity market in Great Britain has recently been opened to competition and is served by 14 regional incumbents, and up to 15 entrants in each area. This study finds that the incumbents' regulated prices are discriminatory between consumers using different payment methods, and that firms are practising third-degree price discrimination between areas. The authors discuss the implications for regulatory policy both in the UK and in other countries where electricity markets are being deregulated. Copyright 2001 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Otero, Jesus & Waddams Price, Catherine, 2001. "Price Discrimination, Regulation and Entry in the UK Residential Electricity Market," Bulletin of Economic Research, Wiley Blackwell, vol. 53(3), pages 161-175, July.
    • Handle: RePEc:bla:buecrs:v:53:y:2001:i:3:p:161-75
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    1. repec:spo:wpmain:info:hdl:2441/7172 is not listed on IDEAS
    2. repec:spo:wpmain:info:hdl:2441/7189 is not listed on IDEAS
    3. Evens Salies, 2008. "Mergers in the GB electricity market: effects on retail charges," Applied Economics, Taylor & Francis Journals, vol. 40(11), pages 1483-1490.
    4. Davillas, Apostolos & Burlinson, Andrew & Liu, Hui-Hsuan, 2022. "Getting warmer: Fuel poverty, objective and subjective health and well-being," Energy Economics, Elsevier, vol. 106(C).
    5. Alberto Iozzi & Roberta Sestini & Edilio Valentini, 2006. "Pricing Discretion and Price Regulation in Competitive Industries," Journal of Regulatory Economics, Springer, vol. 29(2), pages 151-165, March.
    6. Evens Salies & Catherine Waddams Price, 2004. "Charges, Costs and Market Power: the Deregulated UK Electricity Retail Market," The Energy Journal, , vol. 25(3), pages 19-35, July.
    7. Favero, Filippo & Grossi, Luigi, 2023. "Analysis of individual natural gas consumption and price elasticity: Evidence from billing data in Italy," Energy Economics, Elsevier, vol. 118(C).
    8. repec:hal:wpspec:info:hdl:2441/7068 is not listed on IDEAS
    9. repec:hal:spmain:info:hdl:2441/7189 is not listed on IDEAS
    10. Evens Salies & Catherine Waddams, 2003. "Pricing structure in the deregulated UK electricity market," SciencePo Working papers Main hal-03592457, HAL.
    11. repec:spo:wpecon:info:hdl:2441/7189 is not listed on IDEAS
    12. repec:hal:spmain:info:hdl:2441/7068 is not listed on IDEAS
    13. Amountzias, Chrysovalantis & Dagdeviren, Hulya & Patokos, Tassos, 2017. "Pricing decisions and market power in the UK electricity market: A VECM approach," Energy Policy, Elsevier, vol. 108(C), pages 467-473.
    14. repec:spo:wpecon:info:hdl:2441/7068 is not listed on IDEAS
    15. repec:spo:wpmain:info:hdl:2441/7068 is not listed on IDEAS
    16. Hattori, Toru, 2010. "Determinants of the number of bidders in the competitive procurement of electricity supply contracts in the Japanese public sector," Energy Economics, Elsevier, vol. 32(6), pages 1299-1305, November.
    17. repec:hal:spmain:info:hdl:2441/7172 is not listed on IDEAS
    18. repec:hal:wpspec:info:hdl:2441/7189 is not listed on IDEAS
    19. Stephen Littlechild, 2019. "Promoting competition and protecting customers? Regulation of the GB retail energy market 2008–2016," Journal of Regulatory Economics, Springer, vol. 55(2), pages 107-139, April.

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