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Pool prices, contracts and regulation in the British electricity supply industry

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Author Info
Dieter Helm
Andrew Powell

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Abstract

The privatisation of utilities was advocated as a policy which would enhance efficiency. Ultimately, these efficiency gains would benefit customers, resulting in lower prices and / or higher-quality outputs. In the electricity supply industry, privatisation was accompanied by a much more explicit attempt to restructure the industry, with the aim of enhancing competitive pressure. The 1980s witnessed a succession of attempts to introduce competition into the electricity industry. The 1983 Energy Act addressed entry conditions, but in practice left the dominant incumbent, the state-owned Central Electricity Generating Board, in a position to manipulate the tariffs to the disadvantage of entrants (Hammond, Helm and Thompson 1986).

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Publisher Info
Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.

Volume (Year): 13 (1992)
Issue (Month): 1 (February)
Pages: 89-105
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Handle: RePEc:ifs:fistud:v:13:y:1992:i:1:p:89-105

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  1. Andrew Powell, 1996. "Sobre la reestructuración, regulación y competencia en el sector de servicios públicos: experiencia del Reino Unido y sus implicaciones para América Latina," RES Working Papers 4039, Inter-American Development Bank, Research Department. [Downloadable!]
  2. Robert H. Patrick & Frank A. Wolak, 2001. "Estimating the Customer-Level Demand for Electricity Under Real-Time Market Prices," NBER Working Papers 8213, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Andrew Powell, 1996. "On Restructuring, Regulation, and Competition in Utility Industries: Experience in the United Kingdom and Implications for Latin America," RES Working Papers 4038, Inter-American Development Bank, Research Department. [Downloadable!]
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