The political economy and regional implications of energy policy in Britain in the 1990s

In this paper I first outline significant developments in the field of energy policy in Britain in the 1990s. Two themes identified by the 1998 White Paper on energy sources for power generation are considered in depth: the related issues of diversity and security of supply; and the operation of the electricity market. The leading fossil-fueled generators have pursued a path of internationalisation in the course of the decade that contrasts markedly with the contraction of the indigenous coal industry. These corporate strategies and their regional implications are considered in a subsequent section. It is concluded that there are contrasting arguments presently being applied by government to different fuel sources. A likely consequence of recent policies will be high levels of imports of coal and gas by the second decade of the 21st century. This in part arises from government preoccupation in the early 1990s with reducing the degree of dependence upon coal as an energy source.