I am not an economist, but as far as I understand the reason why they recommend the introduction of competition into markets is because the competitive pressure to win market share will encourage the various companies involved to introduce innovations that will reduce costs and/or increase quality of service.
I can see how this works in the telecoms market. Some of the companies active in the market provide high quality services and premium prices and others provide lower levels of service, but at cheaper prices. In practice it can be difficult to find out the quailty level of the service you will get from a particular service provider (in fact it can sometimes be hard to find out the exact price they will charge you either), but in general the market works well with different service offerings appealing to different market segments.
The trouble with the electricity market is that the electric grid is designed to deliver exactly the same voltage of electricity to all of the customers. I know that some of the companies like to boast about the fact that they use a high percentage of renewable energy sources such as wind, but there is no way to tell that the electricity delivered to their customers' houses is from these clean source sand not from the dirty coal fired stations owned by their competitors. Likewise, if the wind didn't blow and there was a shortage of electricity, fairness should dictate that the environmentally conscious customers should be the ones subjected to the inconvenience of a temporary loss of supply - but there is no way to cut off supply to these customers while maintaining supply to the customers who chose to go with the less environmentally friendly company.
As far as I can see the only way that the electricity companies can compete with each other is in their billing system. This is hardly the area where the greatest amount of innovation is to be found. Am I missing something?