Natural Gas Markets in the U.K. : Competition, Industry Structure, and Market Power of the Incumbent
The deregulation of the U.K. natural gas industry has facilitated new entry and competition in almost all segments of the industry except pipeline transportation. The new regulatory framework, developed largely by the Office of Gas Regulation (Ofga...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1998/03/693689/natural-gas-markets-uk-competition-industry-structure-market-power-incumbent http://hdl.handle.net/10986/11560 |
| Summary: | The deregulation of the U.K. natural gas
industry has facilitated new entry and competition in almost
all segments of the industry except pipeline transportation.
The new regulatory framework, developed largely by the
Office of Gas Regulation (Ofgas), has allowed market forces
to stimulate a variety of specialized services and market
transactions to meet customer needs. But the entire process
has been difficult because of a flaw in the initial industry
structure: the government privatized British Gas as a
vertically integrated company. The U. K. experience shows
that leaving gas supply integrated with pipeline
transportation and tying up gas in long-term contracts
impede competition. This Note reviews the U.K. reform and
the development of new spot, on-system, and
"Flexibility Mechanism" markets. |
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