Energy Conservation in England and Wales - what has happened following privatization of the electricity sector and the lessons that may be learned by the Nordic countries

Panel: Panel 1. Policy, Programs and Program Evaluation

Author:
Ragnar E. Löfstedt, University of Surrey, UK

Abstract

This paper examines energy conservation, more specifically electricity conservation in the household sector following the privatization of the 12 British electricity companies in December 1990. This privatisation, the first of its kind in Europe, provides many insights for other nations, such as Norway and Sweden, who are planning to follow a similar route to restructuring their electricity sectors. In general, electricity plants have become more cost effective, mainly through reducing staff, but there have been no gains in the area of energy efficiency. The electricity companies feel that there is little justification for intervention in this sector, preferring to rely on market forces; in other words, people will save energy if it is economically wise to do so. In this paper I seek to further this discussion to determine if, in fact, electricity conservation (which was practically non-existent before the privatization) has increased, decreased or remained constant following privatization. Additionally, will the experience of Great Britain be of use in the Nordic countries?

Will, for example, electricity conservation in Sweden effectively be discouraged following the privatization of the electricity sector? Qualitative research, including interviews with policy makers and leading academics in both Great Britain and Sweden, and media analyses of a mjor newspaper in each nation were conducted in order to answer these questions.