Powering the economy

In this chapter the reform processes relating to the electricity and natural gas markets are examined, beginning with the changes that occurred in the early 1990s and tracking through the first two decades of the new century. In doing so, the influence of international trends are considered, and the various benefits and problems associated with the reform process are discussed in detail. In addition to looking at the structural and ownership changes that occurred during this period, specific attention is given to the manner in which prices for monopoly assets were determined, changes in regulation of electricity pricing for retail customers and the impact of the measures used to promote renewable energy. Related to these various reforms has been the problems that have arisen from the need to ensure security of supply. Additional attention, therefore, is given to an examination of these issues, including the pros and cons of establishing a domestic gas reserve policy.