Do public policy decisions and political intervention help or hinder the electricity restructuring process, and how do they do so? This second publication in a new series on electricity reform explores this issue in depth.
Document Highlights
Electricity Restructuring: Acting on Principles, the second briefing in a new series of reports from the Energy Policy Centre at Signal49 Research, examines public policy decisions and political intervention and their effect on electricity restructuring.
The electricity industry is a politically sensitive industry. It requires continuous and vigilant regulatory oversight. Using the case studies of the United Kingdom, California, Alberta, and Ontario, this briefing highlights the need for improved public policy in order to reduce uncertainty for private investors who wish to enter the market.
It finds that public policy decisions and political intervention must guided by the principles of clarity and consistency. Clarity implies that the rules, objectives, and timelines of restructuring are clear to all market participants.
Consistency must exist with regard to market rules, implementation, and consumer expectations. Only when both principles are present can the necessary private sector investment in restructuring electricity markets flourish.
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