The British experience of privitization and regulation of the electricity industry, and some lessons for the Philippines

P. Stubbs, R.E.A. Macatangay

    Research output: Contribution to journalArticlepeer-review

    3 Citations (Scopus)

    Abstract

    The electricity industry was the UK's biggest privatization. It was complex, since part of the industry was a natural monopoly, but some of it could be broken up into competing enterprises. Service imperatives and political considerations inhibited the optimum break-up of generation. Efficiency has improved and real prices have fallen since divestiture, but it is arguable how much scope for radical competitive improvement remains. Imminent reforms under NETA are controversial and, some economists claim, misconceived, risking a new system, like the old, implemented without enough forethought. The Philippines electricity system urgently needs reform, though privatization is problematic, given existing long-term high-cost supply contracts. However, reform proceeds, having absorbed some lessons from UK experience: generation has more players, and spatial pricing and separate buyer bidding should avoid some pitfalls of the UK pool. Problems of capital scarcity, imperfections in market information and ineffectual competition policy are likely to empower existing players.
    Original languageEnglish
    Pages (from-to)113-136
    Number of pages24
    JournalJournal of the Asia Pacific Economy
    Volume7
    Issue number1
    DOIs
    Publication statusPublished - 2002

    Fingerprint

    Dive into the research topics of 'The British experience of privitization and regulation of the electricity industry, and some lessons for the Philippines'. Together they form a unique fingerprint.

    Cite this