New models of public ownership in energy

The current challenges facing the energy sector cast doubt on the universal applicability of a wholly privately-owned, competitive and independently-regulated energy industry. In this paper, we discuss these challenges and ask why it is that they have led to the emergence of new forms of public ownership and involvement. We then explore six case studies to illustrate the variety of ownership models that have developed in response to the challenges of climate change, energy security, energy poverty and the uncertainty around electricity market reform. Our case studies show that public involvement can coexist with generally liberalised electricity markets, including at the retail market level. They also demonstrate that ‘public’ ownership can take a number of forms, including mutual ownership, consumer trusts, state ownership and municipal ownership. Public organisation is on its way back in but in many new forms with many different structures. The choice is no longer between full state ownership and full private ownership. The challenge is to maintain the benefits of both and to encourage innovation in new organisational forms.