Clare Spottiswoode (PA Consulting) Eileen Marshall (Office of Gas and Electricity Markets) Michael Parker (SPRU, University of Sussex) Frank Cronin (British Energy)
Abstract
This collection of papers originated in a workshop held on 3 November 1999 at the Surrey Energy Economics Centre (SEEC), University of Surrey, on the subject of UK Energy Privatisation: Retrospect and Prospect. In the first paper, Claire Spottiswoode, CBE, PA Consulting and former Director General of Gas Supply, examines ‘the revolution that has taken place in the British utilities industries through a fundamental change in its structure and the introduction of competition’ and discusses how lessons learnt from gas deregulation can be applied to the still heavily regulated water industry. Eileen Marshall, CBE, Deputy Director General of Ofgem, discusses progress in introducing competition in electricity through the New Electricity Trading Arrangements (NETA). She concludes that these together with other pro competitive changes ‘offer the prospect of large and rapidly achieved reductions in wholesale prices and lower prices for customers through more effective supply competition’. Michael Parker of the Science Policy Research Unit, University of Sussex, is less sanguine about the impact of reform on the coal industry. Although productivity has increased, ‘in the light of the industry’s continuing fundamental problems, the change of ownership in 1996 has made little difference’. The final paper looks at the impact of reform from inside the nuclear industry. Frank Cronin, Manager, Internal Consultancy, British Energy, discusses the fundamental changes that took place within the management of British Energy in response to the growth of competition in other parts of the energy sector. The papers show that privatisation and reform within the UK energy continue to provide a dynamic stimulus towards improved performance and innovation within and outside the sector.
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