A switch from a marginal cost pricing rule to a two-part tariff

A switch from an average cost pricing rule to rate of return regulation

A switch from rate of return regulation to revenue cap regulation

A switch from revenue cap regulation to price cap regulation.

One function of the UK’s Office of Fair Trading is to try and help consumers

The Competition Commission may consider firms with large shares of a local market as well as firms with large shares of the UK market

The European Commission is allowed to control state aid to firms in the EU

Deregulation means ending regulation

An external benefit to consumers

An external cost to consumers

An external benefit to producers

An external cost to producers

Where marginal private cost equals marginal private benefit.

Where marginal private cost equals marginal social benefit

Where marginal social cost equals marginal private benefit

Where marginal social cost equals marginal social benefit

A regulation limiting how much CO2 a power station can emit per megawatt of electricity generated.

A tax on electricity

A tax on emissions of CO2

Giving power stations the property right to emit CO2, and relying on people affected to bribe them to cut back