The reorganisation of the electricity supply industry-a critical review

In February 1988, Mrs. Thatcher´s Government published ´Privatising electricity´. Six well known principles were expressed: electricity supply should be driven by customer need; competition would best guarantee customer´s interests (i.e. prices would be reduced); regulation would be needed where natural monopolies occurred; security and safety must be maintained; customers will have new ´rights´, not just safeguards; electricity supply industry employees would have a stake in their future, new career opportunities and freedom to manage their commercial affairs without government interference. After eight years of implementation, how well has the industry done in achieving the goal set out in this White Paper and have the customers and the national economy really benefited? This review tries to answer these questions through opinions expressed by various industrial and economic commentators who have inside knowledge of the electricity supply industry (ESI). The generation market, transmission and distribution, and the supply business are discussed in this review.