Allowing British Electricity Consumers to Choose Their Supplier: Was it Worth It?

Abstract

In 1990, britain was a pioneer of the package of measures for the electricity industry, variously described as privatization, liberalization, and marketization: in short, the British model. Britain has often been seen as the example other countries should follow. The vision of the proponents of this package of measures was that, in a competitive system, electricity could be bought and sold efficiently in the same way as other products, with no need for sector-specific regulations. However, 30 years later, this vision seems no nearer to being achieved. The current dominance in this sector of climate change considerations over economic efficiency means the market cannot be left alone to function. So, this vision will not be achieved in the short- to medium-term.