| Abstract: | One of the principal purposes of this paper is to define the appropriate base for energy prices in the UK, while another is to consider how it can be measured. Since the energy subsector of the UK economy is dominated by the nationalized coal, gas and electricity industries, it is also necessary to consider the relationship between this price base and the guidelines for the economic and financial control of these industries which have been set by successive governments. This is especially important for any evaluation of the gas and electricity price increases recently announced by the UK government because the government appears to have used the financial targets which it has set these industries to determine the specific price increases. |
