Smart Meters and Retail Competition: Trends and Challenges
AEA Papers and Proceedings
vol. 112,
May 2022
(pp. 461-65)
Abstract
Retail electricity competition has been introduced for over a decade in many markets, but challenges in having an active retail market remain. Universal smart meters have also emerged as a trend. What is the interaction between competition and smart meters? What role can information via smart meters play in these markets? Has it enabled enhanced competition? Or has it further increased the incumbent's advantage? We present an overview and preliminary exploration using an aggregate data set from the Spanish electricity market. The evidence suggests that competition challenges remain large, although some modest evidence of increased pricing innovation exists.Citation
Enrich, Jacint, Ruoyi Li, Alejandro Mizrahi, and Mar Reguant. 2022. "Smart Meters and Retail Competition: Trends and Challenges." AEA Papers and Proceedings, 112: 461-65. DOI: 10.1257/pandp.20221061Additional Materials
JEL Classification
- L13 Oligopoly and Other Imperfect Markets
- L94 Electric Utilities
- L98 Industry Studies: Utilities and Transportation: Government Policy