There is a case for transmission and distribution of energy to be a regulated
monopoly at the current time, as no competition has emerged, and it is
unlikely to do so. This applies equally to distribution of, eg water. Where
there is a natural monopoly, regulation needs to be retained.
With regard to externalities, what is required is a consistent approach (the
polluter pays - as I suggested in the main NEXUS debate). What represents a
fair payment is however currently far from clear (at least to me).
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Posted to uk-policy, a service of Nexus. http://www.netnexus.org/