The privatization and liberalization of the UK electricity industry is the most important and influential reform within the worldwide electricity sector to have occurred in the last half century. Competition was introduced to large parts of the industry, the industry was transferred from state ownership into the hands of private investors, and a new system of independent regulation was established, presided over by a new regulator, the Director General of Electricity Supply (DGES), who presides over the Office of Electricity Regulation (OFFER). The basic principles of the reform are:
- Seperation of functions – into generation, transmission, distribution, and supply.
- Regulation of monopoly elements (transmission and distribution).
- Competition in generation and supply.
- Transitional arrangements (including support for nuclear generation).
This report outlines the results of these changes.