This paper seeks to illustrate the development of the regulatory regime in the UK electricity industry from the time of restructuring and privatisation to the present. In order to explain why regulation has developed in the way that it has, the paper focusses on key events which have triggered changes in the regime, rather than providing an exhaustive chronicle of the evolutionary process. The scene is set with a brief description of the regulatory regime put in place as part of the restructuring and privatisation of the electricity industry. The subsequent imposition of a Pool price cap and the requirement on generators to dispose of plant are used to demonstrate that the regulator was prepared to make changes designed to foster improved competition in the generation sector. The next major shift in approach was the re-opening of the distribution price controls, prompted by concern that the true worth of the Regional Electricity Companies was rather higher than had been assumed during the Distribution Price Control Review. This led to criticism of the regulator concerning the nature and timing of his announcements, which was one of the contributory factors in the adoption of a different approach to the next Transmission Price Review process. The progress of this second Review of NGC's Price Control is compared with other concurrent Reviews to illustrate the variation in approach which had emerged by this stage, and the extent to which the regulated companies are prepared to challenge the regulatory authorities. Finally, a consideration of the Government Green Paper: "A fair deal for consumers" demonstrates the extent to which public opinion has influenced policy on regulation.
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