The integrated company´s perspective

The electricity supply industry in Scotland comprises three companies, ScottishPower, Scottish Hydro Electric (the companies) and Scottish Nuclear. The restructuring of the industry in Scotland was accompanied by a series of contractual arrangements made between the companies and, in the case of nuclear generated electricity, between Scottish Nuclear and the companies. These arrangements, known as the Restructuring Contracts, provide the companies with, amongst other things, access to a greater mix of generating sources than is provided by their respective owned generating stations. The author discusses the regulatory framework adopted and the licensing framework. The latter includes economic regulation, the framework for competition, security of supply, protecting the technical integrity of the electrical power systems and customer performance. The differences between the electricity supply industry in Scotland and the supply industry in England and Wales are discussed