Frontier Economics

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In the heat of battle

Energy price wars

The latest announcements of price cuts by the major domestic energy suppliers in Britain have been hailed as the opening shots in a price war. This may prove to be an exaggeration, but history tells us that customers switch more in volatile markets. Suppliers tempted to seize this opportunity to grab market share via aggressive customer acquisition strategies should be aware that winning a price war requires a bit of luck and a deep understanding of different customer segments.

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