World Bank2014-09-302014-09-302000-02https://hdl.handle.net/10986/20325The report summarizes the British experience in the electricity industry, from its privatization in 1989, until 1998. It reviews the principles of private ownership, competitive markets, and independent regulation, beneficial to customers in terms of lower prices, and improved quality of services. Competition in generation was enabled through a combination of market incentives, and regulatory policy, while, pressures on gas prices, on equipment installation costs, and efficiency, as well as on contractual risk-sharing arrangements, have brought down the new entry price. The industry's environmental record improved, for tighter emissions limits have been enforced on generating stations, which has induced new entrants to build combined cycle gas-fired stations, reducing carbon monoxide, and sulfur emissions. Furthermore, increased nuclear output, and greater use of combined heat, and power technology, also helped improve the environment. Social benefits account for several factors, namely, the introduction, and enforcement of relevant license conditions, and appropriate Standards of Performance, such as availability of a wide range of payment options; provision of special services to retirees, disabled, or chronically sick customers. Although circumstances may differ from Britain, essentially the principles of public policy apply as well to developing countries.en-USCC BY 3.0 IGOACCESS TO MODERN ENERGYADVERTISINGAGGREGATE SUPPLYAGGREGATE SUPPLY CURVEBIDDINGBUILDING POWER STATIONSCOALCOAL INDUSTRYCOMMERCIALIZATIONCOMPETITIVE GENERATIONCOMPETITIVE MARKETSCOMPETITIVENESSCONSUMERSDEVELOPED COUNTRIESDISTRIBUTION COMPANIESDISTRIBUTION SYSTEMSDUOPOLYECONOMISTSELECTRICITYELECTRICITY GENERATING BOARDELECTRICITY INDUSTRYELECTRICITY POOLELECTRICITY SUPPLYENERGY DEVELOPMENTENERGY EFFICIENCYENERGY SECTOR MANAGEMENT ASSISTANCEFOSSIL FUELSFUELFUELSGAS PRICESGAS SUPPLYGAS TURBINEGAS TURBINESGENERATIONGENERATION MARKETGENERATION MARKET SHARESGENERATORSHIGH-VOLTAGE TRANSMISSIONINDEPENDENT REGULATIONLEGISLATIONLIVING CONDITIONSMARGINAL COSTMARKET INCENTIVESMARKET POWERMARKET SHAREMERGERSMONOPOLIESNEW ENTRANTSNUCLEAR STATIONSPOVERTY ALLEVIATIONPRICE CONTROLPRICE CONTROLSPRICE INDEXPRICE REGULATIONPRIVATE OWNERSHIPREGULATORY FRAMEWORKREGULATORY POLICYRENEWABLE ENERGYRETAILRURAL CONSUMERSSUPPLIERSSUSTAINABLE ENERGYTAXATIONTECHNICAL ASSISTANCETELECOMMUNICATIONSTOTAL OUTPUTTRANSITION ECONOMIESTRANSMISSIONUSE OF ELECTRICITYWHOLESALE PRICES10.1596/20325