The electricity supply industry in
England and Wales was under public ownership from 1948 to
1990. For most of this period, the Central Electricity
Generating Board (CEGB) operated all generation and
transmission as a vertically integrated statutory monopoly.
In 1990, the CEGB was restructured and privatized. This Note
describes how a social cost-benefit analysis is conducted to
assess the worthiness of the exercise and reports the
results. The analysis shows that the effort was worth it.
But there are two areas for improvement in the process of
the restructuring and privatization. First, about a quarter
of the net gains were transferred out of the country. If
more attention had been paid to this possibility at the time
of restructuring, some arrangement could probably have been
found to prevent it. Second, introducing more competition in
generation would have reduced excess entry and lowered
prices, improving the distribution of the net benefits and
increasing social welfare.
Bibliographic Details
| Main Authors: |
Newbery, David M.,
Pollitt, Michael G. |
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| Format: | Viewpoint
biblioteca
|
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| Language: | English |
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| Published: |
World Bank, Washington, DC
1997-09
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| Subjects: | ACID RAIN,
BENEFIT ANALYSIS,
BURNING GAS,
CALCULATION,
CARBON,
CARBON DIOXIDE,
CARBON DIOXIDE EMISSIONS,
COAL,
COAL BURNING,
COAL MINERS,
COAL PLANT,
COAL PRICES,
COST SAVINGS,
CYCLE GAS,
DISCOUNT RATE,
ECONOMIC ACTIVITY,
ECONOMIC EFFECTS,
ELECTRICITY,
ELECTRICITY GENERATING BOARD,
ELECTRICITY GENERATION,
ELECTRICITY PRICES,
ELECTRICITY SUPPLY,
EMISSIONS,
ENVIRONMENTAL BENEFITS,
EXTERNALITIES,
EXTERNALITY,
FOSSIL FUEL,
FUEL SWITCHING,
FUEL USE,
GAS,
GAS GENERATION,
GAS TURBINES,
GDP,
GLOBAL WARMING,
INCOME,
LABOR PRODUCTIVITY,
MARGINAL COST,
MARGINAL COSTS,
MONOPOLIES,
NATIONAL GRID,
NATURAL GAS,
NITROGEN OXIDE EMISSIONS,
NITROGEN OXIDES,
NUCLEAR INDUSTRY,
NUCLEAR POWER,
NUCLEAR POWER STATIONS,
OIL,
OIL PRICES,
POWER GENERATION,
POWER STATIONS,
PRODUCTIVITY GROWTH,
PROFIT MARGINS,
SAVINGS,
SULFUR DIOXIDE,
SULFUR DIOXIDE EMISSIONS,
TAX REVENUE,
VALUE ADDED,
WHOLESALE PRICES ELECTRICAL INDUSTRIES,
DENATIONALIZATION,
COST-BENEFIT ANALYSIS,
COUNTERFACTUAL,
NET BENEFITS, |
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| Online Access: | http://documents.worldbank.org/curated/en/1997/09/441280/restructuring-privatization-uk-electricity-supply-worth
http://hdl.handle.net/10986/11572
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