Please see Professor Littlechild's note to our former Deputy Chairman for 
Enron Europe, Ralph Hodge.  Ralph is no longer with us.  Let me know if you 
would like to support ($$) Littlechild coming to California.  He was a 
somewhat passive regulator (too academic), but is a credible authority, 
having written what is regarded as one of the seminal works on incentive 
regulation, which is the model in use in the UK.   He likes Enron, and has 
been trying to get us to pay him for some work for some time.  No need for it 
here in the UK, but I would use him in emerging markets given the 
opportunity.  Let me have your thoughts at your earliest convenience.  
thanks  mcs 
---------------------- Forwarded by Mark Schroeder/LON/ECT on 08/09/2000 
10:08 ---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  "Stephen Littlechild" <littlechild@tanworth.mercianet.co.uk>           
                08/09/2000 10:00
	

To: "Ralph Hodge" <ralph.hodge@enron.com>
cc: "Mark Schroeder" <mark.schroeder@enron.com>, "Kyran Hanks" 
<Kyran.Hanks@enron.com> 

Subject: retail competition in electricity



Dear Ralph
?
I have just written a?paper on retail  competition in electricity, arguing 
that Joskow, Hogan and Ruff, and California,  have got it all wrong, both in 
theory and in practice.? It is forthcoming  shortly in the DAE and Judge 
Institute working paper  series at Cambridge, but I thought you might like to 
see a copy now  (attached).
?
This is obviously a hot issue in California at  present, and this morning I 
received an invitation to  participate?in a debate there in November  (copy 
forwarded separately). It seems that Enron is also to be invited. I have  no 
other commitments in the US at that time.? Is is something that Enron  might 
be interested in supporting, or for that matter developing  further?
?
We spoke some time ago about the Common Carriage  Consultative Working Group 
at Ofwat. I did in fact aprticipate in that, along  with Kyran Hanks. It was 
a real eye-opener, to see how little awareness there  was of the basic 
conditions conducive to competition, like separate businesses  and accounts.? 
I'm not sure whether Enron is pursuing this now or not. No  doubt lots of 
other things going on.
?
I should be interested to hear from you on retail  competition.? I am copying 
this to Mark Schroeder and Kyran.
?
With regards
?
Stephen
 - Summary 22Aug2000.doc
 - Why we need electricity retailers 22Aug00.doc