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Economics of electricity deregulation and privatization: An introductory survey

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  • Banks, Ferdinand E.

Abstract

This paper is intended as an elementary survey of the electricity deregulation-privatization debate as it is being carried out in both the developed and developing world. An attempt is made to clarify certain misunderstandings about introducing more competition into electricity-supply systems, bringing such things as share and derivative markets into the analysis. Among the most important points mentioned here are that the deregulation experiment in the U.K. is, in reality, reregulation, and the intended equilibrium price of electricity is the long run marginal cost.

Suggested Citation

  • Banks, Ferdinand E., 1996. "Economics of electricity deregulation and privatization: An introductory survey," Energy, Elsevier, vol. 21(4), pages 249-261.
    • Handle: RePEc:eee:energy:v:21:y:1996:i:4:p:249-261
    DOI: 10.1016/0360-5442(95)00122-0
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    References listed on IDEAS

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    1. Colin Robinson, 1995. "Regulation as a Means of Introducing Competition," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 80, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
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    Cited by:

    1. Girod, Jacques & Percebois, Jacques, 1998. "Reforms in sub-saharan Africa's power industries," Energy Policy, Elsevier, vol. 26(1), pages 21-32, January.
    2. Liu, Zhen & Zhang, Xiliang & Lieu, Jenny, 2010. "Design of the incentive mechanism in electricity auction market based on the signaling game theory," Energy, Elsevier, vol. 35(4), pages 1813-1819.
    3. Haas, R. & Auer, H., 2006. "The prerequisites for effective competition in restructured wholesale electricity markets," Energy, Elsevier, vol. 31(6), pages 857-864.

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