Wheeling and dealing [power transmission]

Within a few years the transmission network will remain the last outpost of regulation within the electricity industry for England and Wales. The need for the long-term regulation of the transmission business raises important issues in the economic management of the electricity industry. In particular, what form of regulation will best help to promote the overall goal of economic efficiency within the industry? How should the services of the transmission business be priced? And how can the long-term security of the network be guaranteed? The author describes some of the challenges of combining a regulated transmission business with the quest for market-led economic efficiency.