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Freeing the Nuclear Industry

Listed author(s):
  • Colin Robinson


    (Surrey Energy Economics Centre (SEEC), Department of Economics, University of Surrey)

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    In an energy market which is being liberalised, there is a good cause for privatising nuclear power, moving away from the politicised decision-making of the past. Nuclear generators should be placed in a market in which they have to satisfy private shareholders and sell their product in competition with others. But the government’s proposals have serious weaknesses. By merging Nuclear Electric and Scottish Nuclear, they suppress competition in ideas and they fail to increase rivalry in the electricity generation sector as a whole. A better devised scheme, retaining two companies but making them more equal in size (and, of course, allowing them to diversify), would have helped correct a fundamental weakness of electricity privatisation – which shows up the ability of the major generators to set prices most of the time.

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    Paper provided by Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey in its series Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) with number 85.

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    Length: 36 pages
    Date of creation: Mar 1996
    Handle: RePEc:sur:seedps:85
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