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Switching energy suppliers: It's not all about the money

journal contribution
posted on 14.01.2021, 16:50 by David Deller, Monica GiuliettiMonica Giulietti, Graham Loomes, Catherine Waddams Price, Ana Moniche Bermejo, Joo Young Jeon
Many consumers do not take advantage of lower energy prices available in liberalized retail markets. We provide evidence to explain why consumers may leave substantial amounts of "money on the table" in this way. We observe real decisions made by over 7,000 consumers in a collective switching auction, supplemented by their responses to a survey. We identify factors which may inhibit switching and show that expectations of high switching rates in an unregulated market may be unrealistic. Our findings have important implications for the design and regulation of energy markets, including imposition of price caps on "default" retail tariffs in 2019 in the UK and parts of Australia.

Funding

(EPSRC) Consortium for Modelling and Analysis of Decentralised Energy Storage (C-MADEnS) : EP/N001745/1

Energy Transactions for Non-Traditional Services (EnTraNTS) : EP/R002258/1

OTH FlexiNet

RES-578-28-0002

UK Energy Research Centre Phase 3

Engineering and Physical Sciences Research Council

Find out more...

EPR062258/1

FF3/3

Network for Integrated Behavioural Science

Economic and Social Research Council

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The Network for Integrated Behavioural Science - The Science of Consumer Behaviour

Economic and Social Research Council

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History

School

  • Business and Economics

Department

  • Economics

Published in

The Energy Journal

Volume

42

Issue

3

Pages

95 - 120

Publisher

IAEE's Energy Economics Education Foundation.

Version

AM (Accepted Manuscript)

Rights holder

© The authors

Acceptance date

14/05/2020

Publication date

2020-07-22

Notes

The article is a preprint of a scientific paper that has completed the peer-review process and been accepted for publication within The Energy Journal.

ISSN

0195-6574

eISSN

1944-9089

Language

en

Depositor

Prof Monica Giulietti. Deposit date: 22 May 2020