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Enron Mail |
Fyi. Does this impact on us? Mark
---------------------- Forwarded by Mark E Haedicke/HOU/ECT on 10/20/99 02:01 PM --------------------------- "JOHN G KLAUBERG" <JKLAUBER@LLGM.COM< on 10/19/99 10:51:33 AM To: Mark E Haedicke/HOU/ECT@ECT cc: Subject: Blurb from EEI Report Mark: I thought you would find the attached blurb describing an effort in the UK to attempt to indirectly curb prices for generation of some interest in light of ENA's enhanced interest in building and owning peaker plants and the desire to capture profits particularly during times of electric market volatility (even though ENA's plants, unlike those of PowerGen and National Power, will constitute only a very small percentage of the generation market). While I do not see this type of policy occurring in the U.S. I always think it is useful to keep an eye on developments like this, even if they exist outside the U.S., since many U.S regulators often look to the UK for "ideas" since it is further ahead in some respects on the deregulation curve. John * U.K.: REGULATOR'S PROPOSAL WOULD ALLOW CUSTOMERS TO SUE An offshoot of Dallas-based TXU, Edison Mission Energy and AES Corp. are three energy companies likely to be most affected by U.K. industry regulator Callum McCarthy's announcement yesterday that customers could be able to sue their suppliers for abusively raising prices. The measure is designed to safeguard potential price manipulation by generators until new electricity wholesale trading rules are introduced next year. McCarthy plans to add "good behavior" clauses to legislation proposed by the government last week and scheduled for discussion in parliament next month. And an independent advisory body would settle disputes between McCarthy and electric companies. Allegations from big industry customers that National Power and PowerGen abused their market power by raising prices in July spurred McCarthy's action. The company's combined profits were $21.7 million higher than profits during the same two weeks in 1998. The companies "strenuously deny" the charges of price manipulation (Andrew Taylor, Financial Times, Oct. 19).
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