More than 10 years have passed since the UK embarked on the privatization and liberalization of its power industry. The EU， the USA， Australia， New Zealand and the Asian countries have all followed the trend of deregulation， although with a different type of market design. Taiwan has also maintained a policy of power market deregulation on its reform agenda for more than 10 years. However， due to many economic and political considerations， the reform process has been set back and delayed. The draft of the Electricity Act amendment has been revised again and again but has never reached the real enactment stage. The latest version of the draft was submitted by the Energy Bureau on October 13， 2005. The proposed amendment deregulates the industry by opening up the market to the entry of generation， transmission and distribution business. Independent system operators will become the core group in the market and systems operation of the future. Since the reform process is not an easy task and is usually coupled with many loopholes and risks， the purpose of this study is to present an overview of the deregulation of the English power market and what the reforms have accomplished. This paper is intended to serve as a key reference for decision-makers responsible for the deregulation of Taiwan’s electricity supply industry. Hopefully， in view of the UK’s successful experiences， we can learn from the operations of its market design and monitoring system. In addition， through this review and study we hope we can contribute to rebuilding the confidence of the Taiwan people in the deregulation of our electricity supply industry.
