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2021 | OriginalPaper | Buchkapitel

Understanding the Electricity Switching Behavior of Industrial Consumers: An Empirical Study on an Emerging Market

verfasst von : Murside Erdogan, Selin Metin Camgoz, Mehmet Baha Karan, M. Hakan Berument

Erschienen in: Applied Operations Research and Financial Modelling in Energy

Verlag: Springer International Publishing

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Abstract

Starting from the liberalization of the electricity market in Turkey, the annual switching rates have remained at low levels for both residential and industrial consumers. This study aims to investigate the supplier switching behavior of large scale industrial consumers in the Turkish Electricity market with an emphasis on behavioral factors. The data were collected from a total of 83 companies including Organized Industrial Zone (OIZ) and non-OIZ with the criterion of consuming more than 10,000,000 kWh. The survey includes the items for risk of switching, cost of switching, the attractiveness of switching, perceptions of the service quality, and market competition. The findings of binary logistic regression model revealed that the risk of switching and attractiveness of switching is significantly associated with the probability of switching behavior. That is, one-unit increases in the risk of switching and attractiveness of switching (higher scores denote for unattractiveness) are found to decrease the likelihood of switching the current electricity supplier. Robustness tests were conducted by utilizing binomial logistic estimations for OIZ and non-OIZ companies separately. The findings yielded that, for OIZ companies, the odds of electricity supplier switching behavior is negatively associated with risk of switching and attractiveness of switching; whereas for non-OIZ companies, the odds of switching behavior are found to be related with the risk of switching and perceptions of physical service qualities. The results of this study are particularly crucial for electricity suppliers, regulatory agencies, and policymakers.

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Fußnoten
1
YEKDEM Premium is the amount that is reflected in consumer electricity tariffs for financing the subsidy that the state pays to renewable energy producers. The addition of this premium to the electricity tariff has not been welcomed by the electricity consumers. Nevertheless, all consumers shared the high cost of producing renewable energy.
 
2
The electricity consumption limit is determined by EMRA for the LRST, data for 2019 is used in this chapter.
 
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Metadaten
Titel
Understanding the Electricity Switching Behavior of Industrial Consumers: An Empirical Study on an Emerging Market
verfasst von
Murside Erdogan
Selin Metin Camgoz
Mehmet Baha Karan
M. Hakan Berument
Copyright-Jahr
2021
DOI
https://doi.org/10.1007/978-3-030-84981-8_10