1. Keeping your eye on the ball – the unexpected consequences of liberalisation Carole Pitkeathley Head of Regulatory Affairs energywatch, UK 11 October 2005

2. The UK energy market Off to a good start! Market structure and the social dimension The need for continued reform PresentationOverview

3. 25 million electricity households 20 million gas households 2 million+ in fuel poverty Gas market opened in 1996 Electricity market opened in 1998 66k electricity & 83k gas ‘switch’ each week The UK Energy Market

4. Off to a good start! Choice Lowering prices Removal of supply price controls Abuse of dominant position prevented NETA Suppliers’ offerings were innovative and attractive – e.g. Dual Fuel

5. Levels of Switching in UK

6. Customer Transfers Compared

7. Market Structure and the Social Dimension

8. Poor and dubious sales practices Erroneous transfers Bad billing Debt and disconnection Increasing prices

9. Direct Selling Complaints

10. Customer Transfer Complaints

11. Accounts and Billing Complaints

12. The need for continued reform Not a neutral option – affects firms’ strategic responses Actions to deliver intended benefits Expect the unexpected Prevent the “easy option” ethos Keep policy development ahead of the game

13. Keeping your eye on the ball – the unexpected consequences of liberalisation Carole Pitkeathley Head of Regulatory Affairs energywatch, UK 11 October 2005