The electricity customer's lot. The status of the deregulated Finnish electricity market - Consequences for the customer

Since November 1998 a 'fully competitive supply market' has arguably been in operation in Finland, whereby all types of customer are able to purchase their electricity from the supplier of their choice. During the years since deregulation there has been much and increasing discussion and speculation about the consequences of competition for customers. This independent research report objectively considers the consequences of competition so far in the supply market from the point of view of the electricity customer (residential, industrial and commercial customers). The report additionally highlights successes, failures and areas for future improvement. The report combines existing data from a wide range of sources with original empirical data collected specifically for this report. Original empirical data was derived primarily from questionnaire responses from 1393 household customers and 281 I and C customers. In- depth interviews were also extensively conducted with electricity industry and consumer representatives. The report finds that although there have been achievements, and all customers may have benefited in at least some way, the overall net picture is one of disappointing neutrality and missed opportunities. In fact the report suggests that deregulation has neither led to extensive competition amongst suppliers, nor extensive benefits for customers. Customer awareness, prices, service quality, additional offerings, environmentalism, equality and fairness have apparently not fared particularly well as a result of deregulation, except perhaps for the largest or most active customers. As a result of the situation, customers are mostly rather negative towards the state of competition in Finland at present. The report nevertheless identifies the great potential within the deregulated electricity market. In particular, the report identifies a clear need for increased awareness amongst customers and points out many other known barriers to effective competition which could be easily overcome. (orig.)