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The Assessment: Introducing Competition into Regulated Industries

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  • Helm, Dieter
  • Jenkinson, Tim

Abstract

The introduction of competition into utilities is currently being pursued in the many countries, including the UK. Competition can take various forms, such as competition for outputs, inputs, franchises, and outright takeovers. Attention is currently focused on output competition, whereby customers are being given a choice of final supplier in many industries. We consider the implications of the introduction of such competition, including the effects on industrial structure and contracts, cross-subsidies and distributional concerns, and uncertainty and stranded contracts. We also analyze the transitional problems encountered as competition is introduced and suggest that the UK regulators and government have, in some key respects, failed to define a clear and consistent policy. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Helm, Dieter & Jenkinson, Tim, 1997. "The Assessment: Introducing Competition into Regulated Industries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 13(1), pages 1-14, Spring.
    • Handle: RePEc:oup:oxford:v:13:y:1997:i:1:p:1-14
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    Citations

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    Cited by:

    1. Helm, Dieter, 2002. "Energy policy: security of supply, sustainability and competition," Energy Policy, Elsevier, vol. 30(3), pages 173-184, February.
    2. 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.
    3. Giacomo Calzolari & Carlo Scarpa, 2009. "Footloose Monopolies: Regulating a “National Champion”," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(4), pages 1179-1214, December.
    4. Christian Growitsch & Thomas Wein, 2005. "Negotiated Third Party Access—An Industrial Organisation Perspective," European Journal of Law and Economics, Springer, vol. 20(2), pages 165-183, September.
    5. Mario Pagliero, 2000. "Competition in the UK gas industry," ICER Working Papers 12-2000, ICER - International Centre for Economic Research.
    6. Moschieri, Caterina & Campa, José Manuel, 2014. "New trends in mergers and acquisitions: Idiosyncrasies of the European market," Journal of Business Research, Elsevier, vol. 67(7), pages 1478-1485.
    7. C F Elliott & M Z Acutt, 2001. "Threat-based regulation and endogenously determined punishments," Working Papers 539877, Lancaster University Management School, Economics Department.
    8. Irene Fafaliou & John Donaldson, 2007. "The Contribution of Privatization to Welfare," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(4), pages 461-474, November.
    9. repec:kap:iaecre:v:13:y:2007:i:4:p:461-474 is not listed on IDEAS
    10. Melinda Acutt & Caroline Elliott, 2001. "Threat-Based Competition Policy," European Journal of Law and Economics, Springer, vol. 11(3), pages 309-317, May.
    11. Charlie Weir, 1999. "Regulation and the Development of Competition in the U.K. Gas Supply Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(2), pages 135-147, September.
    12. Donald N. Dewees, 1999. "The Future of Nuclear Power in A Restructured Electricity Market," Working Papers dewees-99-01, University of Toronto, Department of Economics.

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