Dec 1997

A German energy reform law has just been passed. The law that has emerged from a protracted negotiation has incorporated conflicting objectives from a number of stakeholders, resulting in an Act which is vague and likely to be challenged in the courts. However, it looks as if the existing big players will remain as strong as ever. Dr. Michael Kraus

Many publicly-owned distribution utilities across the world have been sold into the private sector in order to combat their clear failure to provide a satisfactory service. One of the most advanced programmes is in Argentina, where the local Exxel Group has teamed up with Unión Fenosa of Spain to turn around three distributors. Mario López

The British Power Pool, successful pioneer of electricity industry privatization though it may be, is under fire from many directions. It is alleged that it has failed to deliver competitive prices, particularly at the generating end. It is also seen as the main factor inhibiting the development of electricity trading, in particular on the futures and derivatives front. An independent review of the pool has now been declared by Minister of State John Battle. There is no shortage of advice and constructive suggestions from all quarters – from the sublime to the ridiculous. Here we look at two of the more credible critiques.

As part of a greater focus on the consumer, utilities in the Nordic electricity markets are launching a brand offensive to develop loyalties among existing clients and identify themselves to potential customers. However, although the electricity customer may be king, does he care? Richard Milner

Most renewable electricity projects are based on new technology and hence have an element of risk attached. This has led risk-averse banks to shy away from lending to such projects for fear of the unknown. There is nothing inherent in renewables, however, that prevents them from being the basis of bankable projects, so long as attention is paid to the major risk factors. If the experience of Fibrowatt is anything to go by, then renewables can be very successfully project financed. Rupert Fraser