Well-Functioning Markets in Retail Energy

"Politicians from all parties in the UK have entered the debate about energy prices with the underlying assumption that the market is not working well. This note does not attempt to evaluate each such intervention and discussion, but explores the assumption which lies behind them—that the market is failing. As the assessment framework identifies, this raises the question of the counterfactual: what would a well-functioning market in retail energy look like, and what is the best way to get close to that state if we still believe that this is desirable?"