Pool prices, contracts and regulation in the British electricity supply industry
Article Abstract:
The privatisation of the UK electricity supply industry was perceived by the government as a means of achieving efficiency resulting in lower prices and better services. The pool system was developed to facilitate competitive bidding and to bring the industry in line with other commodity markets. The increase in pool price levels in the 90s has caused much controversy. The paper examines pool pricing behaviour. It concludes that the financial instruments, Contracts for Differences (CfDs) are vital in forecasting pricing behaviour and should be standardised. CfDs lead to lower prices overall.
Publication Name: Fiscal Studies
Subject: Business, general
ISSN: 0143-5671
Year: 1992
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Regulation and redistribution in utilities
Article Abstract:
The prices UK-based utilities charge their customers for the use of their services are subject to numerous influences. Foremost among these influences are regulators, who have taken advantage of their position to distort prices in favor of some customers. Such actions on the part of regulators are often outside their jurisdiction, since the law governing their existence fails to mention that they have this particular power. Direct government tax and transfer activity is more likely to lead to equal redistribution of the services provided by utilities.
Publication Name: Fiscal Studies
Subject: Business, general
ISSN: 0143-5671
Year: 1995
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