Abstract
March 31, 1990 marked the vesting and operational beginning of an economically restructured electric utility industry in the United Kingdom. Almost all wholesale purchases of electricity in England and Wales are legally mandated to take place through a spot market which sets day-ahead prices for all half-hour periods during the next day. These prices are calculated from the day-ahead half-hourly supply schedules submitted by all generators serving the market and a forecast of the market-level demand for each half-hour period during the following day. Although there have been a number revisions in regulatory rules to control the suspected exercise of market power by generators during this evolving industry restructuring, the England and Wales (E&W) market has been promoted as the model for liberalizing the electricity generation industry in many regions of the United States and worldwide. An example is a plan the California Public Utilities Commission (CPUC) approved in late December of 1995 (and revised in late Spring of 1996), which calls for establishing an electricity spot market or “Poolco” similar to the E&W electricity market, through which all generators would sell power to electricity retailers and large customers in California.
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
We would like to thank Janie Chermak, Michael Crew, and Carl Pechman for helpful comments.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Armstrong, Mark, Simon Cowan, and John Vickers. 1994. Regulatory Reform: Economic Analysis and British Experience. Cambridge, MA: MIT Press.
Baker, A.B. 1992. “The Methodology and Process of Forecasting Nominal Demand.” The National Grid Company, Grid System Management, National Control, GSMNC/ABB/DF 5.1.2.9, Coventry, England.
Brough, Martin, and Seumas Lobban. 1995. Guide to the Economic Regulation of the Electricity Industry. Oxford, UK: OXERA Press.
Bunn, Derek W., and Erik R. Larsen. 1992. “Sensitivity of Reserve Margin to Factor Influencing Investment Behavior in the Electricity Market of England and Wales.” Energy Policy (May): 420–429.
Electricity Association. 1995. UK Electricity. London: Electricity Association Services Limited.
Electricity Association. 1996. UK Electricity. London: Electricity Association Services Limited.
von der Fehr, Nils-Henrik Morch, and David Harbord. 1993. “Spot Market Competition in the UK Electricity Industry.” The Economic Journal 103: 531–546.
Helm, Dieter, and Andrew Powell. 1992. “Pool Prices, Contracts and Regulation in the British Electricity Supply Industry.” Fiscal Studies 13(1): 89–105.
National Grid Company. 1995. 1995 Seven Year Statement. Coventry, England: The National Grid Company plc.
OXERA Press. 1996. “The Stock Market Goes Nuclear.” Energy Utilities (July 15, No. 31/96).
The Economist. 1992. “Electricity Generation: Feeling Gassy.” (May 9): 75–76.
The Pool. 1994. Schedule 9: The Pool Rules. Pooling and Settlement Agreement for the Electricity Industry in England and Wales (amended December 2, 1994).
Wolak, Frank A., and Robert H. Patrick. 1996a. “The Impact of Market Rules and Market Structure on the Price Determination Process in the England and Wales Electricity Market.” Mimeo (June).
Wolak, Frank A., and Robert H. Patrick. 1996b. “The Time Series Behavior of Market Prices and Output in the England and Wales Electricity Market.” Mimeo (June).
Wolfram, Catherine D. 1995. “Measuring Duopoly Power in the British Electricity Spot Market.” Mimeo, MIT.
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1996 Springer Science+Business Media New York
About this chapter
Cite this chapter
Wolak, F.A., Patrick, R.H. (1996). Industry Structure and Regulation in the England and Wales Electricity Market. In: Crew, M.A. (eds) Pricing and Regulatory Innovations Under Increasing Competition. Topics in Regulatory Economics and Policy Series, vol 24. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-6249-8_5
Download citation
DOI: https://doi.org/10.1007/978-1-4615-6249-8_5
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-7867-9
Online ISBN: 978-1-4615-6249-8
eBook Packages: Springer Book Archive