The Uk as a European Laboratory for Electricity Deregulation

Abstract

This article does not suggest that other countries should adopt the British model of electricity privatisation and deregulation. What it does suggest is that other countries can draw useful lessons from the British experience. It describes how the electricity supply industry in England and Wales was restructured to allow competition in generation and in ‘supply’ and continuing regulation of the natural monopoly elements of transmission and distribution. It then identifies the ‘winners and losers’ so far, and goes on to review the various issues yet to be resolved. It emphasises that it is still too soon to assess the overall balance of benefits, costs and risks, but it suggests five lessons which can be drawn from the British experience so far.