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Mergers in the GB electricity market: effects on retail charges

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Abstract:

The opening up of the UK residential electricity sector in 1999 prompted several studies of the impact this had on both the level and structuring of retail charges, and on incumbent players' market power. Drawing on observations of regional tariffs for the month of January 2004, this article supports previous conclusions based on simulated retail charges, looking at the response of real tariffs to distribution and transmission costs, customer density and the length of low voltage underground circuit. We also investigate whether vertically integrated suppliers have a particular effect on charges ceteris paribus the effect of cost drivers and supplier-related factors.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840600794322

Affiliations: Department of Research on Innovation and Competition, OFCE, 250 rue Albert Einstein, Valbonne, France

Publication date: June 1, 2008

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