[Warwick Business School, Centre for Management under Regulation]
Abstract
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
that the market is near to Bertrand in operation
