MARKETS, IMPER FECTIONS AND THE DANGERS OF OVER‐REGULATING ENERGY MARKETS

In: Economic affairs: journal of the Institute of Economic Affairs, Band 24, Heft 2, S. 52-55

Abstract

Government regulation in general has over‐expanded. However, in British energy markets, a new form of regulation, concentrating on promoting competition in gas and electricity, has emerged to the benefit of consumers. If the government pursues its policy of targeting favoured energy activities, these gains will disappear, the costs of achieving environmental targets will be unnecessarily heavy and energy markets will be re‐politicised.