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Working paper / Energy

Electricity Retailing in Norway

Author(s): VON DER FEHR Nils-Henrik M., HANSEN Petter Vegard

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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.