ISBN : 9780199593002
The UK has been at the forefront of the liberalisation of energy industries, privatising and then, over more than two decades, progressively ceding energy policy to market forces. Drawing a parallel between the effect of liberalisation on energy markets with the effect of liberalisation on financial markets, this book provides timely critical analyses of the impact of liberalisation on the UK's energy industries, both upstream and downstream. Divided into 16 chapters, it exposes why market fundamentalism has been controversial for the UK's oil, gas, coal, and electricity industries, each of which is addressed in specific chapters by authors with lengthy specialist experience. In the upstream, there are critical evaluations of the UK's petroleum fiscal regime, of the demise of the coal industry, of gas storage and wholesale markets, and of the electricity wholesale market. In the downstream, there are chapters on company strategies and power over consumers, fuel poverty, and the burden of regulation on companies. Together these two sections reveal why liberalisation has been costly and has resulted in higher prices for domestic consumers. The final section looks to the future. Are the UK's liberalised energy industries and markets equipped to deal with current and future challenges? How far does the market bring security of supply considerations into conflict with the environmental agenda? Can liberalised markets deliver more nuclear power, renewables, and CHP? How might EU policy change agendas in the UK? Whether we will need market redesign or more state control, is the question addressed by each author.
1. UK Energy Policy and Market Fundamentalism: a Historical Overview
PART ONE: UPSTREAM
2. A Requiem for the UK's Petroleum Fiscal Regime
3. Managing the UK's remaining Oil and Gas Resources: a Future Role for the State?
4. The Premature Demise of the British Coal Industry and the Future of Coal Consumption in the UK
PART TWO: MIDSTREAM AND DOWNSTREAM
5. Gas Storage: A Case of Market Failure
6. Wholesale Gas Markets: Conductors for Insecurities of Supply
7. Electricity Generation and Wholesale Markets
8. Energy Markets, Industry Structure, and Portfolio Power over Consumers
PART THREE: MARKET FUNDAMENTALISM AND FUTURE CHALLEGES
9. Liberalisation and Fuel Poverty
10. Can the Market Deliver both Security of Supply and Challenging Environmental Objectives for Electricity Generation?
11. What Future for Nuclear Power in a Liberalised Energy Market?
12. Liberalised Energy Markets: an Obstacle to Renewables?
13. Energy Efficiency and Conservation in the UK: Missed Opportunities and Future Possibilities
14. The Future of Combined Heat and Power: the Current Debate and its Policy Implications
15. From Liberalisation to Intervention: Europe, the UK, and the Changing Agenda
16. Conclusions: The Content and Delivery of Future UK Energy Policy