Working Paper 13-10

Consumer Behaviour in the British Retail Electricity Market

AUTHORS: Miguel Flores & Catherine Waddams Price

ABSTRACT: Using a unique specially generated data set, we show that the strength of the relationship between search and switching varies across groups of consumers with different attitudes and that the strongest driver of consumer activity is the anticipated gains from switching. The expected length and difficulty of the switching process has little deterrent effect, and factors such as internet use, employment and experience in other markets affect switching behaviour amongst only some groups. Policy makers need to identify these different incentives for various types of consumers if they are to develop effective instruments to stimulate consumer choice and activity

KEYWORDS: Switching Behaviour; Electricity Market; Competition Policy

CITATION: Flores, M. & Waddams Price, C. (2013), 'Consumer Behaviour in the British Retail Electricity Market', CCP Working Paper 13-10

Policy Brief 13-10

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