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Keeping your eye on the ball – the unexpected consequences of liberalisation Carole Pitkeathley...
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Transcript of Keeping your eye on the ball – the unexpected consequences of liberalisation Carole Pitkeathley...
Keeping your eye on the ball – the Keeping your eye on the ball – the unexpected consequences of unexpected consequences of
liberalisationliberalisation
Carole PitkeathleyCarole Pitkeathley
Head of Regulatory AffairsHead of Regulatory Affairs
energywatchenergywatch, UK, UK
11 October 200511 October 2005
• The UK energy market
• Off to a good start!
• Market structure and the social dimension
• The need for continued reform
Presentation Presentation
OverviewOverview
• 25 million electricity households
• 20 million gas households
• 2 million+ in fuel poverty
• Gas market opened in 1996
• Electricity market opened in 1998
• 66k electricity & 83k gas ‘switch’ each week
The UK The UK
Energy MarketEnergy Market
Off to a good Off to a good start!start!
• Choice
•Lowering prices
•Removal of supply price controls
•Abuse of dominant position prevented
•NETA
•Suppliers’ offerings were innovative and attractive – e.g. Dual Fuel
Market Market Structure and Structure and the Social the Social DimensionDimension
Scottish and
Southern, 10%
British Gas, 41%
EDF, 11%
Scottish Power,
8%
Powergen, 17%
New Entrants,
1%
Npower, 12%
Market Market Structure and Structure and the Social the Social DimensionDimension
•Poor and dubious sales practices
•Erroneous transfers
•Bad billing
•Debt and disconnection
•Increasing prices
Direct Sales Complaints
0
500
1000
1500
2000
2500
Month
Cas
es R
ecei
ved
Domestic Direct Selling
Business Direct Selling
Direct Selling ComplaintsDirect Selling Complaints
All Transfer Related Complaints
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Month
Cas
es R
ecei
ved
Domestic Transfers
Business Transfers
Customer Transfer ComplaintsCustomer Transfer Complaints
All Accounts & Billing Complaints
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Month
Cas
es
Domestic Accounts
Business Accounts
Accounts and Billing ComplaintsAccounts and Billing Complaints
The need for The need for continued continued reformreform
•Not a neutral option – affects firms’ strategic responses
•Actions to deliver intended benefits
•Expect the unexpected
•Prevent the “easy option” ethos
•Keep policy development ahead of the game
Keeping your eye on the ball – the Keeping your eye on the ball – the unexpected consequences of unexpected consequences of
liberalisationliberalisation
Carole PitkeathleyCarole Pitkeathley
Head of Regulatory AffairsHead of Regulatory Affairs
energywatchenergywatch, UK, UK
11 October 200511 October 2005