Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 02/2009: Electricity Retailing in Norway

Nils-Henrik M. von der Fehr () and Petter Vegard Hansen
Additional contact information
Nils-Henrik M. von der Fehr: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway

Abstract: We analyse retailer and household behaviour on the Norwegian electricity market, based on detailed information on prices and other market characteristics. We find that there exists a competitive market segment where a number of retailers compete fiercely for customers, with small margins on all products. However, we also find evidence of monopolistic behaviour, whereby retailers exploit the passivity of some of their customers. We discuss explanations for these results, as well as means to improve market performance.

Keywords: Electricity retailing; electricity prices

JEL-codes: A10

44 pages, June 9, 2008

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