This case is aboutÂ REGULATION
PUBLICATION DATE: January 01, 1998
Price Cap: The UK’s Efforts to Regulate Regional Distribution Companies Case Solution
â€Sometimes, situations take such unexpected turns that they soar past the mainstream levels of irony and cross new limits. Things have become so absurd that the laughter is incredibly distressing. The United Kingdom electricity privatization and regulation businesshas now hit this very plight.”â€“ The Energy Economist â€“ March, 1995.This quotation captures the depths to which the credibility of the British plan to control its electricity supply companies had dropped.
What had occurred to a system of regulation touted as a model for the remaining part of the world-a version most experts felt was a significant improvement over rate of return regulation, broadly used in the USA? Yet in Britain, it had run smack into one of the largest political and monetary furors in recent times. HKS Case Number 239.0.