Competition and Innovation in Retail Electricity Markets: Evidence from Italy

Abstract

Italy's 2015 Annual Competition Law, if finally approved, provides for phasing out retail electricity price regulation, as well as the implementation of full retail liberalisation, from 1 July 2018. This is a significant reform, not just because it is consistent with the broader market design for electricity. Indeed, retail liberalisation is a qualifying element of the full integration of the European Union's electricity market. The full opening of retail markets provides a great opportunity for innovation, both on the demand side and on the supply side. This article investigates the theoretical background, and presents some empirical evidence, on the competition-innovation nexus in retail electricity markets.JEL codes: L43, L81, L94, D47.

The Moderating Effect of Store Format on the Relationships Between ICT, Innovation and Sustainability in Retailing

“…Identifying and defining the different types of innovation has not been an easy task in the field of marketing. One of the most referenced groupings in the literature is the one that distinguishes between technological innovations and non-technological innovations ( Lin, 2015 ; Stagnaro, 2017 ; De Oliveira et al, 2020 ; Kim et al, 2020 ). Technological innovations include: (a) product innovations; and, (b) process innovations; while non-technological innovations group together: (a) organizational innovations; (b) marketing innovations; and, (c) relational innovations.…”

Managing the liberalization of Italy's retail electricity market: A policy proposal☆

“…Littlechild (2002) argues that competition in retail electricity markets works as a dynamic discovery process whereby not just prices, but also a larger value proposition, may be chosen by customers. Bundling electricity with other services has been found to be instrumental to increase the customers' involvement in retail markets (Eakin and Faruqui 2000); Italy is no exception under this perspective (Stagnaro 2017). Moreover, demand-side response in retail markets appears to be an effective means of dealing with demand-and price-spikes in wholesale markets (Rassenti et al 2002, Cooke 2011, especially under real-time pricing regimes (Borenstein and Holland 2005).…”

Does innovation contribute to generate brand equity and customer satisfaction?: Evidence in the large grocery distribution

“…La línea de trabajo relativa a la innovación pone en evidencia la falta de consenso a la hora de explicar el concepto de innovación desde el punto de vista empresarial (Lin 2015;Marcon 2017;Marín-García et al 2019). Algunos autores han subrayado que la innovación en el comercio minorista es una forma de modificar de forma exitosa las complicadas condiciones del mercado en oportunidades para estas empresas (Reinartz et al 2011), posibilitando su éxito en los mercados en los que operan (Stagnaro 2017). En esta dirección, es posible observar, principalmente, dos modelos de innovación atendiendo a la forma en que las innovaciones son aceptadas, evaluadas y adaptadas por las organizaciones: modelos estáticos y modelos dinámicos.…”

“…Las principales propuestas de clasificación de los tipos de innovación se han basado en la naturaleza de las innovaciones. Bajo esta forma de clasificación, se distingue entre innovaciones tecnológicas e innovaciones no tecnológicas (Stagnaro 2017). Las innovaciones tecnológicas, a su vez, incluyen innovaciones de producto e innovaciones de proceso, mientras que las innovaciones no tecnológicas agrupan las innovaciones organizacionales, las innovaciones en marketing y las innovaciones relacionales.…”