| Abstract: | This article explores the role of regulation as a supporting institution for an energy market. Two aspects are examined: first, the role of regulation in promoting a competitive market for the retail supply of energy, and second, the role of regulation in providing access to the transmission and distribution networks, assumed to be monopolies, that provide services for the retail suppliers. UK regulation promoted retail energy competition until 2008, but in that year changed direction, and since then has been restricting retail competition. In contrast, UK regulation since 2008 has encouraged more customer engagement in the network part of the energy sector. This offers the prospect, at least, of the emergence of a form of competition and choice in the process of setting price controls. |
