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Reform of the Electricity Supply Industry

  • Peter Hartley

    (Rice University, Houston, TX. USA)

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    Electricity markets around the world are becoming more competitive, partly in response to technological changes. Successful restructuring requires an understanding of the sources of monopoly power in the industry, and separation of competitive from natural monopoly elements. Competitive wholesale electricity markets require transparent regulatory and cross-subsidy mechanisms. Such changes in turn make public ownership less relevant for protecting consumers. Competitive markets are also more risky for owners, and governments are not ideally suited to financing large and very risky business ventures. The arguments are illustrated by reference to the reforms undertaken in Australia in the last decade.

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    Article provided by in its journal Economia Mexicana NUEVA EPOCA.

    Volume (Year): VIII (1999)
    Issue (Month): 1 (January-June)
    Pages: 45-90

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    Handle: RePEc:emc:ecomex:v:8:y:1999:i:1:p:45-90
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    1. Green, Richard & Newbery, David M G, 1991. "Competition in the British Electricity Spot Market," CEPR Discussion Papers 557, C.E.P.R. Discussion Papers.
    2. Hartley, Peter & Trengove, Chris, 1984. "The Marginal Costs of Electricity Supply in Victoria," The Economic Record, The Economic Society of Australia, vol. 60(171), pages 340-55, December.
    3. Hartley, Peter & Trengove, Chris, 1986. "Who Benefits from Public Utilities?," The Economic Record, The Economic Society of Australia, vol. 62(177), pages 163-79, June.
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