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Competition and Regulation in the UK Gas Industry

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  • Waddams Price, Catherine
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    Abstract

    The decade since privatization has seen gas change from an integrated monopoly with no competition and without the structure necessary to encourage it, to an industry moving rapidly towards full competition. British Gas was privatized as an integrated monopoly; it had no regulation in the bulk market, and light regulation in the tariff market. Within 10 years it has lost more than half its bulk market, has voluntarily 'demerged' into a transportation and supply arm, and is leading the way in liberalization of the residential market. Some of these changes have been assisted by the particular circumstances of the gas market, especially the contracts which the incumbent has inherited. The Regulator is relying increasingly on prevention of undue discrimination for control of the dominant supplier, and this principle has been discussed and applied in a number of cases within the industry. Liberalization also raises important distributional issues, especially in the residential market. Copyright 1997 by Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

    Volume (Year): 13 (1997)
    Issue (Month): 1 (Spring)
    Pages: 47-63

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    Handle: RePEc:oup:oxford:v:13:y:1997:i:1:p:47-63

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    Web page: http://oxrep.oupjournals.org/

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    Cited by:
    1. Mario Pagliero, 2000. "Competition in the UK gas industry," ICER Working Papers 12-2000, ICER - International Centre for Economic Research.
    2. Huw Dixon & Joshy Easaw, 2001. "Strategic Responses to Regulatory Policies: What Lessons Can Be Learned from the U.K. Contract Gas Market?," Review of Industrial Organization, Springer, vol. 18(4), pages 379-396, June.
    3. Gasmi, Farid & Oviedo, Juan Daniel, 2010. "Investment in transport infrastructure, regulation, and gas-gas competition," Energy Economics, Elsevier, vol. 32(3), pages 726-736, May.
    4. Giovanni Goldoni, 2007. "Un bilancio delle liberalizzazioni dei settori dell’energia elettrica e del gas naturale in Italia e in Europa," Working Papers 40, University of Verona, Department of Economics.
    5. Pagliero, Mario, 2003. "Strategic interaction on the UK Gas Transportation System: the St. Fergus and Bacton constraints," Energy Economics, Elsevier, vol. 25(4), pages 345-358, July.
    6. Artana, Daniel & Navajas, Fernando & Urbiztondo, Santiago, 2001. "Regulation policies towards utilities and competitive industries. The case of Argentina," The Quarterly Review of Economics and Finance, Elsevier, vol. 41(5), pages 585-607.

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