Economic analysis of the electricity market in England and Wales

The electricity supply industry in England and Wales (E&W) was restructured and privatized on Vesting Day, 31 March 1990. Eight years on, the UK government has reviewed the trading arrangements of the E&W electricity market and accepted the regulator's proposal of replacing the day-ahead market (the pool) by several forward markets, a short-term bilateral market, and a balancing market. This letter looks at what some economists had examined of the present E&W electricity market under the day-ahead arrangement. Such economic analysis may serve as a reference to power engineers elsewhere participating in the restructuring of their electricity supply industries.