Development of a competitive UK energy market

Since privatisation of the electricity and gas industries in the UK, one of the most important developments has been the introduction of competition.

Competition in the generation segment of the electricity industry in England and Wales was introduced in 1990 with the privatisation of non-nuclear generating assets.  At privatisation there were 7 companies participating in the generation market of England and Wales – at the end of 2007 there were 30 companies involved in electricity generation in the UK.

The electricity supply segment of the electricity market has been progressively opened up to competition.  The introduction of competition in the supply of electricity to industrial and commercial customers began in 1990.  By June 1999 all of these customers were able to select their supplier.  The introduction of competition in the supply of electricity to domestic customers began in September 1998 and, by May 1999, all of these customers were able to select their supplier.

The introduction of competition in the supply of gas to industrial and commercial and power generation customers began at the end of 1986 and by 1992 most of this class of customer was able to select its supplier.  The introduction of competition in the supply of gas to domestic customers began in April 1996 and by May 1998 all of these customers were able to select their supplier.