ON THE IMPLEMENTATION OF ECONOMIC REGULATION IN UK ENERGY INDUSTRIES

This paper discusses two major issues in UK energy regulation. The first concerns the idea (or ideal) of "regulation for competition" practised in the UK. This means that attention naturally focuses on regulation of access prices to network transportation facilities and the creation of markets for purchase and supply of electricity and gas. The second issue is the appropriate scope of regulation. How might it be determined that some industries require a dedicated regulator whilst others do not? What are the benefits of regulation? Some light is cast on these questions by means of comparisons between gas and oil.