ABSTRACT
This chapter considers the ways in which privatisation of the nationalised industries affects the consumer and the effects on consumers without first looking at the more general rationale for privatisation. It examines the theory behind privatisation, before focusing on the consumers’ experience of privatisation to date. It moves on to electricity, establish some key principles for safeguarding consumers in a privatised electricity supply industry (ESI), and suggests a possible institutional framework to ensure that this happens. The provision of long and short distance bus services was deregulated in 1980 and 1986 respectively, with widespread relaxation of the licensing requirements on coach and bus operators. At this stage, evidence of the results is mixed. The kind of regulation required for the ESI will depend on the structure chosen by the Energy Secretary, which, at the time of writing, is still to be decided.
