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Towards the Partial Deregulation of Great Britain’s Electricity Networks

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  • Bell, A.

Abstract

Electricity network costs are an increasing proportion of consumer bills in Great Britain. At the same time and in common with other markets, lower distributed generation costs are enabling a degree of defection from the public network. This creates a risk that consumers not able to defect are left with higher fixed costs, counterbalanced with reduced network reinforcement requirements. This paper proposes that this be managed by policymakers by removing economic regulation from networks for certain consumer types and enabling price discovery.

Suggested Citation

  • Bell, A., 2026. "Towards the Partial Deregulation of Great Britain’s Electricity Networks," Cambridge Working Papers in Economics 2648, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:2648
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    References listed on IDEAS

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    6. Diamond, Peter A & Mirrlees, James A, 1971. "Optimal Taxation and Public Production II: Tax Rules," American Economic Review, American Economic Association, vol. 61(3), pages 261-278, June.
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    Keywords

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    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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