ABSTRACT
In most Western states, the task of procuring, producing and delivering energy to consumers is largely performed by private companies, which do so in the pursuit of profit; some of these companies, in fact, are among the most profitable in the world. However, because the acquisition and delivery of adequate supplies of energy is considered so essential to the economic health of the nation, governments also play a significant role in key aspects of the energy procurement process. The intervention of state authorities in the management of energy acquisition and distribution is typically justified in terms of ‘energy security’ – that is, ensuring that appropriate incentives and policy instruments are in place to impel private firms to take the steps needed to produce and deliver adequate supplies of energy to meet the nation’s requirements; when the private sector proves unequal to this crucial task, the state must be prepared to step into the breach.
