Consumer Governance in Electricity Markets

This paper examines switching decisions by households in the MainPower distribution area of New Zealand. The paper measures the extent to which customers switch retailers following the release of information about directors' bonuses, marketing surrounding firm ownership, and work by the New Zealand Electricity Authority to promote transparency of the switching process. We document strong customer inertia, which, for some consumers, has reduced following the Electricity Authority's interventions. Customer movements following information releases and marketing campaigns are modest, suggesting that prices and inertia may be the most important drivers of customer migration.