Competition Buzz: United Kingdom Electric Sector Reforms and Integration

By:John J. Garcia & Luis Camilo Fernández

The Electrical industry in Great Britain has presented great changes. Back from 1881 when Joseph Chamberlain promoted a law prohibiting all free competition and confining it to few contracts with the purpose of eliminating the privilege of some individuals. Since that time, the State has tried during the last 20 years to maximize the efficiency of the sector and the benefit of the service to benefit in the process. With that being said, giving total opening to the companies related to the sector, but controlling and regulating the conditions of business and the market with the purpose of introducing the free competition and guaranteeing the efficiency of the lending companies of this service. This leads us to ask is this: ¿What reforms have been made in the electrical sector of the United Kingdom related to the vertical disintegration? ¿Which are the effects that have had these reforms in the electrical sector on integration or vertical disintegration? ¿Which have been the effects of the reforms on the asignative efficiency, that is to say, the effect in the prices of the service? These are the questions that will be addressed in the development of this writing.

Full Content: SSRN

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