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The Potential for Segmentation of the Retail Market for Electricity in Ireland. ESRI WP433. April 2012

Hyland, Marie and Leahy, Eimear and Tol, Richard S.J. (2012) The Potential for Segmentation of the Retail Market for Electricity in Ireland. ESRI WP433. April 2012. [Working Paper]

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    We estimate the gross margin that is earned from the supply of electricity to households in Ireland. Using half hourly electricity demand data, the system marginal price (also called the wholesale price) and the retail price of electricity, we analyse how the gross margin varies across customers with different characteristics. The wholesale price varies throughout the day, thus, the time at which electricity is used affects the gross margin. The main factor in determining gross margin, however, is demand. The highest gross margins are earned from supplying customers that have the following characteristics: being aged between 46 and 55, having a household income of at least €75,000 per annum, being self–employed, having a third level education, having a professional or managerial occupation, living in a household with 7 or more people, living in a detached house, having at least 5 bedrooms or being a mortgage holder. An OLS regression shows that gross margin is partly explained by the energy conservation measures which are present in a household, the number of household members, the number of bedrooms, income, age, occupation and accommodation type.

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    Item Type: Working Paper
    Uncontrolled Keywords: Electricity demand, market segmentation, gross margin, Ireland.
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > energy policy (Including international arena)
    Countries > Ireland
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Economic and Social Research Institute (ESRI), Dublin > ESRI Working Papers
    Depositing User: Alyssa McDonald
    Official EU Document: No
    Language: English
    Date Deposited: 10 Jul 2017 13:00
    Number of Pages: 22
    Last Modified: 10 Jul 2017 13:00

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