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Strategic change in the market for domestic electricity in the UK

By Bitten Brigham and Michael Waterson


This paper examines developments in the market for domestic electricity supply in the UK since September 1998 when the market was thrown over to competition using a variety of sources including firm interviews and a consumer questionnaire. We find that there was a substantial amount of entry, but that there has since been significant consolidation. There is still a substantial gap between the prices set by a firm in its incumbent area and prices obtainable from entrants to the market. There is no evidence\ud that the market is near to Bertrand in operation

Topics: HB
Publisher: [Warwick Business School, Centre for Management under Regulation]
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