Economics
In the News
Regulatory failure in the UK electricity industry
30th January 2020
A case of regulator pitched against regulator, with the National Audit Office suggesting that lenient regulation of electricity network providers has seen consumers overpaying for their electricity.
Our research in 2017 revealed how gas and electricity networks have been able to overcharge consumers by £7.5 billion
— Citizens Advice (@CitizensAdvice) January 30, 2020
Today's @NAOorguk report is more evidence energy networks have enjoyed a major windfall at the expense of consumershttps://t.co/BezAp3Yq58
This might be considered regulatory failure, and you might think that it also implies a degree of regulatory capture, where regulators side with producers rather than act in consumers' interests.
The problem has emerged as a result of the financial target set for investing in the network, with only one firm overspending and the majority underspending, boosting returns to investors at the expense of the customer. Expect the next round of financial target setting to be far more stringent. You might even consider what the role of these targets is...
Customers 'overpaid for electricity for years' https://t.co/PfFsu0QcUD
— BBC Business (@BBCBusiness) January 30, 2020
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