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#Energy, Mobility & Sustainability

Retail Energy Markets Under Stress

  • July 13, 2022
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Document(s)
Paper | Retail Energy Markets Under Stress

The rise in the cost of energy across Europe has put energy markets under considerable stress. CERRE is currently conducting a research project focused on both wholesale and retail European energy markets, with the aim to formulate policy recommendations for the future of market design.

Our latest issue paper entitled ”Retail Energy Markets under Stress – Lessons Learnt for the Future of Market Design”, authored by leading academics Nils-Henrik von der Fehr, Catherine Banet, Chloé Le Coq, Michael Pollitt, and Bert Willems, is the research project’s first publication and focuses on key issues related to retail markets.

The paper aims to address and provide some initial answers to the below research questions:

  • How well have European retail electricity markets been coping with the current energy crisis? How have governments responded to increasing prices?
  • What short-term measures can governments take to soften the impact of high energy prices?
  • What long-term measures can governments take to protect consumers from high energy prices?
  • What should be the role of the EU vs. the Member States? What legal constraints are imposed by EU directives and regulations?
  • Do we need to regulate the risk exposure of suppliers? What are the options for doing this?

The authors provide a brief discussion on energy retailing, before presenting four country experiences: France, Norway, the Netherlands and Great Britain. Based on these experiences, the paper subsequently attempts to draw lessons and identify challenges and opportunities for retail markets going forward.

Another short paper on wholesale market design, as well as a long-form analysis and policy recommendations report on both wholesale and retail markets, will be released later in 2022 to complement this initial paper.

Recommended citation: Von der Fehr, N., Banet, C., Le Coq, C., Pollitt, M. and B. Willems (2022) ‘Retail Energy Markets Under Stress’, CERRE, 13 July

Author(s)
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Nils Henrik Von Der Fehr (2)
Nils-Henrik von der Fehr
Research Fellow
and University of Oslo

Professor Nils-Henrik M. von der Fehr is Professor of Economics at the University of Oslo. In addition to numerous academic positions, Nils-Henrik has chaired or served as a member of government committees both in his native Norway and internationally; he continues to provide expert advice to private companies and government institutions around the world on energy, as well as other issues. His research interests include microeconomics, industrial economics, regulation and competition policy.

Professor Nils-Henrik M. von der Fehr is Professor of Economics at the University of Oslo. In addition to numerous academic positions, Nils-Henrik has chaired or served as a member of government committees both in his native Norway and internationally; he continues to provide expert advice to private companies and government institutions around the world on energy, as well as other issues. His research interests include microeconomics, industrial economics, regulation and competition policy.

Catherine Banet (2)
Catherine Banet
Academic Co-Director
and University of Oslo

Catherine Banet (PhD) is Professor of Law at the University of Oslo, and Head of the Department for Energy and Resources Law, Norway. Her legal research activities focus on energy market design, energy transport infrastructures regulation, support schemes and financing models, focusing on renewable energy and notably offshore wind, climate change mitigation measures such as carbon capture and storage (CCS), and hydrogen regulation.

Prof. Banet has a background from the private law practice (Norway, France), the European Commission (DG ENV), U.S. diplomatic mission and academia. She is a member of the Academic Advisory Group of the Section on Energy, Environment and Infrastructure Law of the IBA, and Chair of the Board of the Norwegian Energy Law Association.

Catherine Banet (PhD) is Professor of Law at the University of Oslo, and Head of the Department for Energy and Resources Law, Norway. Her legal research activities focus on energy market design, energy transport infrastructures regulation, support schemes and financing models, focusing on renewable energy and notably offshore wind, climate change mitigation measures such as carbon capture and storage (CCS), and hydrogen regulation.

Prof. Banet has a background from the private law practice (Norway, France), the European Commission (DG ENV), U.S. diplomatic mission and academia. She is a member of the Academic Advisory Group of the Section on Energy, Environment and Infrastructure Law of the IBA, and Chair of the Board of the Norwegian Energy Law Association.

Chloe Le Coq (2)
Chloé Le Coq
Research Fellow
and University Paris Panthéon-Assas (Dept. of Economics & CRED)

Chloé Le Coq is Professor of Economics at Université Paris-Panthéon-Assas (CRED) and Research Fellow at the Stockholm School of Economics (SITE). She is a Member of the Scientific Advisory Board DIW Berlin and a Member of the Scientific Committee Chair ETI LAB -Mines Paris (since 2022). She is involved in the university incubator AssasLab. She has held visiting positions at Purdue University, the University of California Energy Institute at Berkeley, and the National University of Singapore.

Her research investigates topics related to antitrust policy, industrial organization, and behavioral economics, with a particular focus on energy markets and social innovation. Her recent work includes empirical studies on cartel formation, information structure in electricity markets, and experimental studies of social entrepreneurs.

Chloé Le Coq is Professor of Economics at Université Paris-Panthéon-Assas (CRED) and Research Fellow at the Stockholm School of Economics (SITE). She is a Member of the Scientific Advisory Board DIW Berlin and a Member of the Scientific Committee Chair ETI LAB -Mines Paris (since 2022). She is involved in the university incubator AssasLab. She has held visiting positions at Purdue University, the University of California Energy Institute at Berkeley, and the National University of Singapore.

Her research investigates topics related to antitrust policy, industrial organization, and behavioral economics, with a particular focus on energy markets and social innovation. Her recent work includes empirical studies on cartel formation, information structure in electricity markets, and experimental studies of social entrepreneurs.

Michael Pollitt
Michael Pollitt
CERRE Honorary Academic Director
University of Cambridge

Michael Pollitt is Professor of Business Economics at the Judge Business School, University of Cambridge. He is an Assistant Director of the university’s Energy Policy Research Group (EPRG) and a Fellow and Director of Studies in Economics and Management at Sidney Sussex College, Cambridge. Michael is an elected Vice President (for Publications) of the International Association for Energy Economics (IAEE). He is a former external economic advisor to Ofgem.

Michael Pollitt is Professor of Business Economics at the Judge Business School, University of Cambridge. He is an Assistant Director of the university’s Energy Policy Research Group (EPRG) and a Fellow and Director of Studies in Economics and Management at Sidney Sussex College, Cambridge. Michael is an elected Vice President (for Publications) of the International Association for Energy Economics (IAEE). He is a former external economic advisor to Ofgem.

Bert Willems (2)
Bert Willems
Research Fellow
and Université catholique de Louvain

Professor Bert Willems, is a CERRE Research Fellow and a Professor of Economics at the Université catholique de Louvain where he studies and teaches energy management and environmental economics. He is affiliated with the Law and Economic Center at Tilburg University (TILEC), the Toulouse School of Economics and a board member of the Benelux Association for Energy Economics (BAEE).

Professor Bert Willems, is a CERRE Research Fellow and a Professor of Economics at the Université catholique de Louvain where he studies and teaches energy management and environmental economics. He is affiliated with the Law and Economic Center at Tilburg University (TILEC), the Toulouse School of Economics and a board member of the Benelux Association for Energy Economics (BAEE).

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