Privatization, Competition and Regulation in the British Electricity Industry, with Implications for Developing Countries
The report summarizes the British experience in the electricity industry, from its privatization in 1989, until 1998. It reviews the principles of private ownership, competitive markets, and independent regulation, beneficial to customers in terms...
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| Format: | ESMAP Paper |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2000/02/693344/privatization-competition-regulation-british-electricity-industry-implications-developing-countries http://hdl.handle.net/10986/20325 |
| Summary: | The report summarizes the British
experience in the electricity industry, from its
privatization in 1989, until 1998. It reviews the principles
of private ownership, competitive markets, and independent
regulation, beneficial to customers in terms of lower
prices, and improved quality of services. Competition in
generation was enabled through a combination of market
incentives, and regulatory policy, while, pressures on gas
prices, on equipment installation costs, and efficiency, as
well as on contractual risk-sharing arrangements, have
brought down the new entry price. The industry's
environmental record improved, for tighter emissions limits
have been enforced on generating stations, which has induced
new entrants to build combined cycle gas-fired stations,
reducing carbon monoxide, and sulfur emissions. Furthermore,
increased nuclear output, and greater use of combined heat,
and power technology, also helped improve the environment.
Social benefits account for several factors, namely, the
introduction, and enforcement of relevant license
conditions, and appropriate Standards of Performance, such
as availability of a wide range of payment options;
provision of special services to retirees, disabled, or
chronically sick customers. Although circumstances may
differ from Britain, essentially the principles of public
policy apply as well to developing countries. |
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