The topic of this paper is: The realization of the consumer’s free choice of supplier on the Danish retail market for electricity in accordance with the continuing liberalization of the internal market of electricity. The idea behind this topic is to analyze the current competitive climate on the Danish retail market for electricity in order to identify why the competition is not effective which limits the mobilization of consumers who actual want to make use of the free choice to purchase electricity from another supplier. At this point there is much debate on consumers who remain with their present supplier of electricity, who has a license to distribute electricity to consumers who do not use their right to purchase electricity from a supplier of their own choice. This compared to the fact that only about 2 percent of the consumers yearly have chosen another supplier. Much of this debate centers on the non-transparency on the Danish retail market for electricity, which makes it very difficult for the consumers to realize if they can get a financial saving by changing supplier. Furthermore the local monopolies limit the competition between the suppliers. A huge part of the problem is caused by the supply-system based on the ideas of a “default supplier”. The “default supplier”-system is imposed to maintain the supply service. To improve the competition we have suggested some long run initiatives which will provide greater transparency and remove the local monopolies together with the price regulation. Among other things we suggest to introduce an online chat-service in order to provide better service and an “electricity-package” which the consumers has access to. This “electricity-package” contains information about the possibility to freely choose another supplier, etc. Beyond this we suggest to change the supply-system from a “default-supplier”-system to a “supplier of last resort”-system. The “supplier of last resort”-system will maintain the supply service in a way that is much less intervening. Finally this assignment argues for some proposals for solutions which legislators on the Danish retail market for electricity could use in order to increase the mobilization of consumers who make use of their free choice to substitute suppliers.
|Educations||MSc in Commercial Law, (Graduate Programme) Final Thesis|
|Number of pages||113|