Competition and prices in electricity supply

The electricity industry has changed considerably in the UK as a result of the restructuring which was carried out at privatisation. Several of the features of the UK industry are becoming more common overseas. These include: competition in generation and supply; separation of transmission and distribution functions; developments of electricity markets; more private sector participation; and further development of electricity regulation. Here, the author describes how the development of competition in generation has been characterised by the widespread introduction of combined cycle gas turbine power plants. At the same time many older coal-fired plants have been closed