Liberalisation and divestiture in the UK energy sector
Over the past 10 years, the government has privatised two energy industries — gas and electricity — and is presently selling British Coal. Vickers and Yarrow (1988) point out that the privatisation of utilities has two components, for the sale of assets to the private sector may be accompanied by changes in industrial structure. It is possible to sell assets without liberalisation, just as it would be possible to liberalise a market without asset transfers.2 The three energy industries were privatised with very different structures and competitive environments. This paper examines the structures chosen in the light of the benefits to government, private producers and consumers, focusing on whether restructuring and liberalisation should occur before or after privatisation. A similar choice exists after flotation between divestiture and restructuring of the industry itself and changing the external competitive or regulatory environment. Within energy, we show that the structure chosen for one industry affects the options available for another, because of the complex interactions within the sector.
Volume (Year): 16 (1995)
Issue (Month): 1 (February)
|Contact details of provider:|| Postal: |
Phone: (+44) 020 7291 4800
Fax: (+44) 020 7323 4780
Web page: http://www.ifs.org.uk
More information through EDIRC
|Order Information:|| Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kreps, David M. & Wilson, Robert, 1982.
"Reputation and imperfect information,"
Journal of Economic Theory,
Elsevier, vol. 27(2), pages 253-279, August.
- Dieter Helm & Najma Rajah, 1994. "Water regulation: the periodic review," Fiscal Studies, Institute for Fiscal Studies, vol. 15(2), pages 74-94, May.
- John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, June.
- Leroy P. Jones & Pankaj Tandon & Ingo Vogelsang, 1990. "Selling Public Enterprises: A Cost/Benefit Methodology," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262600625, June.
- Newbery, David M, 1993. "The Impact of EC Environmental Policy on British Coal," Oxford Review of Economic Policy, Oxford University Press, vol. 9(4), pages 66-95, Winter.
- Green, Richard J & Newbery, David M, 1992.
"Competition in the British Electricity Spot Market,"
Journal of Political Economy,
University of Chicago Press, vol. 100(5), pages 929-53, October.
- Green, Richard & Newbery, David M G, 1991. "Competition in the British Electricity Spot Market," CEPR Discussion Papers 557, C.E.P.R. Discussion Papers.
- Ben Hammond & Dieter Helm & David Thompson, 1985. "British Gas: options for privatisation," Fiscal Studies, Institute for Fiscal Studies, vol. 6(4), pages 1-20, November.
When requesting a correction, please mention this item's handle: RePEc:ifs:fistud:v:16:y:1995:i:1:p:75-89. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Benita Rajania)
If references are entirely missing, you can add them using this form.