Switching in the Danish Electricity Market

Last registered on December 21, 2022

Pre-Trial

Trial Information

General Information

Title
Switching in the Danish Electricity Market
RCT ID
AEARCTR-0009352
Initial registration date
May 03, 2022

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
May 05, 2022, 8:46 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
December 21, 2022, 7:03 AM EST

Last updated is the most recent time when changes to the trial's registration were published.

Locations

Region

Primary Investigator

Affiliation
University of Copenhagen

Other Primary Investigator(s)

PI Affiliation
CBS

Additional Trial Information

Status
In development
Start date
2022-05-04
End date
2023-08-31
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
We study the impact of two interventions on consumer switching in the retail electricity market in Denmark. We look at actual switching behavior, switching intentions and the intention-behavior gap. We also collect data on participants’ preferences, savings-beliefs, and knowledge of the electricity market.
Our aim is to investigate 1) what interventions work to get people to consider/switch their electricity provider, 2) what interventions work on different type of people, and what this means for future policy initiatives, 3) whether and how self-reported switching intentions differ from actual switching behavior, 4) how participants feel about outsourcing the switching to a provider, and 5) if participants are prone to procrastination when it comes to switching providers.
To address our research questions, we conduct an online survey with a working-age representative sample of the Danish population. In the survey, we first collect basic demographics which we use to display targeted information. We then measure knowledge about electricity contracts, preferences for contracts, past switching behavior and market perception.
Participants are then randomly allocated to an intervention. Next, we measure participants’ intentions to switch electricity provider. The survey also includes questions designed to elicit cognitive certainty. We track whether participant engage with the provided information. Lastly, we use administrative data to examine whether people did or did not switch electricity provider.
External Link(s)

Registration Citation

Citation
Damsgaard, Ida and Christina Gravert. 2022. "Switching in the Danish Electricity Market." AEA RCT Registry. December 21. https://doi.org/10.1257/rct.9352-1.1
Experimental Details

Interventions

Intervention(s)
We study the impact of two interventions on consumer switching in the retail electricity market in Denmark. We look at actual switching behavior, switching intentions and the intention-behavior gap. We also collect data on participants’ preferences, savings-beliefs, and knowledge of the electricity market. Our aim is to investigate 1) what interventions work to get people to consider/switch their electricity provider, 2) what interventions work on different type of people, and what this means for future policy initiatives, 3) whether and how self-reported switching intentions differ from actual switching behavior, 4) how participants feel about outsourcing the switching to a provider, and 5) if participants are prone to procrastination when it comes to switching providers.
Intervention (Hidden)
• Control: No provided information before questions
• Information: Participants in this treatment are told about 1) the time it takes to switch providers, 2) that they are eligible by law to switch after 6 months, 3) expected average savings for their region and usage level and 4) a step-by-step guide on how to switch. We calculate savings by comparing the average price on the market to the currently cheapest offer on the market for the next 6 months.
• Information + Hassle Cost Reduction: Participants in this treatment receive the same information the individuals in the information treatment receive. On top of that they receive an offer for 1-month free service that automatically switches them to the cheapest provider.
Intervention Start Date
2022-05-04
Intervention End Date
2022-05-18

Primary Outcomes

Primary Outcomes (end points)
Intention to switch in the next 3 months, actual switching during the following three month
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
When they plan to switch, when they switch, certainty about switching, clicking on a link to a switching website
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
To address our research questions, we conduct an online survey with a working-age representative sample of the Danish population. In the survey, we first collect basic demographics which we use to display targeted information. We then measure knowledge about electricity contracts, preferences for contracts, past switching behavior and market perception.
Participants are then randomly allocated to an intervention. Next, we measure participants’ intentions to switch electricity provider. The survey also includes questions designed to elicit cognitive certainty. We track whether participant engage with the provided information. Lastly, we use administrative data to examine whether people did or did not switch electricity provider.
Experimental Design Details
More details in the attached pre-analysis plan
Randomization Method
Randomization is done by questionpro in the survey
Randomization Unit
Unit of randomization are individuals
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
100,000 individuals (no clusters)
Sample size: planned number of observations
100,000 individuals are invited. Response rate of 10% is expected. Final sample 10,000 individuals.
Sample size (or number of clusters) by treatment arms
3300 per treatment arm
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
We use simulations to estimate our power. We expect a 10 % response rate corresponding to approximately 10,000 responses. We expect to be able to match 90 percent of the respondents with electricity data. We expect baseline switching to be 3% within 3 months. We are powered to detect a 75% increase in switching (2 percentage points) in 3 months. 3 Months will be counted from the day the survey is sent out.
IRB

Institutional Review Boards (IRBs)

IRB Name
University of Copenhagen
IRB Approval Date
2021-12-21
IRB Approval Number
NA
Analysis Plan

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Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials