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Re-Monopolising Power: Ten principles for electricity market reform

Britain’s electricity market is being hamstrung by too much regulation and uncertainty, according to a new study from Policy Exchange.

The research finds that costs are being piled on consumers, with generators waiting for government to centrally plan, and regularly fine-tune its plans, rather than seeking out the best investments and innovations to secure supplies and reduce carbon emissions.

Extra regulatory risk for those seeking to build power stations is likely to add £1.25 billion a year to the costs of new investment – equivalent to almost £50 for every household in the UK.

A healthy electricity generation market is vital if the right investment, operation and innovation  decisions are to be made in a timely way to maintain security of supply and to lower carbon emissions while constraining rises in electricity prices.

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