Consumer Governance in Electricity Markets

Abstract

This paper examines switching decisions by households in the MainPower distribution area of New Zealand. The paper measures the extent to which customers switched in response to information about directors’ bonuses, marketing surrounding firm ownership, and work by the New Zealand Electricity Authority to promote switching behaviour. The first two events demonstrate the magnitude of consumer concerns about firm governance in an Electricity market. The latter provides a measure of search costs in a market where no central switching service is provided.