User-producer relations in the British electricity supply industry: The impact of competition Online publication date: Thu, 10-Jul-2014
by Steve Thomas
International Journal of Global Energy Issues (IJGEI), Vol. 9, No. 1/2, 1997
Abstract: The trend to make electricity supply a competitive business has been driven by claims that the traditional structure inevitably led to economic inefficiency. The example of the UK is used to re-examine the rationale for the traditional utility structure, particularly the role of the utility as a repository for expertise which could be used to improve the design of equipment and stimulate technical advances. Three main potential issues are identified. First, the international power plant supply industry may now be too concentrated to be fully competitive and may be unresponsive to users' needs. Second, the adoption of gas-fired technologies has led to a loss of utility expertise in operating complex technologies. If gas becomes too expensive, this loss may be regretted. Third, the co-operative research programmes involving utilities, equipment suppliers and government, by which new technologies were developed are not compatible with competitive electricity supply.
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