Energy Sector

This essay will detail the impact of EU liberalisation policy on the UK energy industry and relate this to a previous sample of a group of suppliers. This essay will discuss industry supplier concentration, oligopoly and monopolistic competition, the EU competition commission and potential single markets which are not yet subject to scrutiny by the competition commission.

As the global population increases exponentially, having passed six billion in 1999, the world population is expected to be 8.9 billion by the year 2050. The worlds energy consumption will increase by an estimated 54 percent by 2025. Energy demand in the industrialized world is projected to grow 1.2 percent per year. Energy is a critical component of sustained economic growth and improved standards of living. One of the major requirements for sustaining human progress is an adequate source of energy. As the world’s technological enhancements and standards of living improve, so too does their appetite for electricity.

Using the data and your knowledge of economics assess the arguments for and against the government intervening in the UK electricity industry.

Energy is a daily consumption that everybody uses in their daily lives. As a nation, we as modern people in the United States rely heavily upon energy sources such as oil, wind, thermal, natural, solar, hydraulic, etc. During the 70s, energy was a booming industry that everybody wanted to be a part of. This industry affected people 's way of living and everyday use of technology such as house appliances, automobiles, industry, and city power grids. During this era, an energy crisis occurred which had a big impact on many people nationally and internationally. This energy crisis was the result of the production peak in the 1970s, the oil crisis of 1973, and the energy crisis of 1979.

It was the dominant model that was responsible for delivering electricity to consumers. The traditional utility business model was formed within the finance, technology as well as regulation interplay. It emerged as a result of the pioneers of industry such as Samuel Insull when they made a realization that technology was able to allow power plants to become larger particularly through the use of steam turbines. In addition to that, it allowed power plants to reach economies of scale that had the effect of leading to the reduction of the unit cost of power. In addition to that he together with others realized that they could sell electricity to diverse customers and make money. The utility regulatory model works in such a way that technology is employed in the production of electricity in large scale. The large production of electricity sustains the large firms which consequently made it necessary for financing mechanism through holding companies that have many investors and in some instances low-cost financing access. This consequently leads to regulation that ensures that the various electric companies operated as monopolies consequently avoiding capital resources waste in duplicate infrastructure together with stabilizing the cost of capital through the reduction of risk and the provision of electricity service that was affordable. The system shaped the development of the current system as the current system was based on that model and some moderations were made to it to produce the current system. There are various alternative models to the traditional for-profit utility regulatory system that include cooperatives and public power systems. Whereas the traditional model was for profit, the alternative ones are not for profit as they aim at providing affordable and reliable electricity consumers at a reasonable price as well as protecting the

Recent doubt in country’s energy supply as a result of political concerns in the Middle East nations, and other foreign oil generating nations, also volatility in the prices of oil, and natural gas have contributed to increase country’s energy independence through a greater local energy supply and to minimize the greater effects of the economy from any prices fluctuation in the fossil fuel markets, including the natural gas price hike in 2004 and 2005 cyclone

The current energy policy for the United States of America is quickly becoming obsolete in current times. With issues of national security, pollution and global warming, and sustainability all becoming ever more important in today’s world the nation is in need of a serious energy overhaul. As it stands now government entities and officials rely primarily on private companies to create and transport the energy that the American public uses daily. The problem with this energy policy stems from the three main features of how private companies handle the production and acquisition of energy: relying on fossil fuels, importing fuels, and operating in an unsustainable fashion.

Continued investment should be encouraged in order to develop the best technology in energy for the future. Continued investment will allow for new and exciting developments that will improve the energy industry in the long run. It will assist the industry in satisfying the growing demand and need for sustainability. There are a number of political and legal factors that are significant to the energy industry. For example, laws and government regulation on energy use could potentially affect the demand for domestic energy and thus lead to a shift in prices. However, with an increase of clean energy use, the demand for energy will not change dramatically due to laws and regulations, instead, the future prosperity of the globe will improve.

Under the restructured Philippine power industry, the DOE serves as an oversight, policy and implementing agency mandated to plan and implement a comprehensive program for the efficient supply and economical use of energy (EPIRA, Section 37a). The EPIRA likewise created the ERC, an independent, quasi-judicial regulatory body, mandated to promote competition, ensure customer choice, and regulate transmission charges and retail rates charged by distribution utilities, among other functions (EPIRA, Sections 38 and 43).

Energy, especially from fossil fuels, is a key ingredient for all sectors of a modern economy and plays a fundamental role in improving the quality of life in less developed economies. In 2007, India is ranked fifth in the world in terms of energy demand; accounting for 3.6% of total energy consumed, and is expected to grow at 4.8% in the future. India imports 70% of the oil it uses, and the country has been hit

In "The Case for Decentralized Generation of Electricity”, Thomas Casten and Brennan Downes summarize an extensive research that Casten and a team of researches went through in order to develope a new, more economically efficient, source of generating power. Casten and Downes incorporated past and present statistics of electricity generation in order to prove to the reader that they are determined to search for new power sources and also that they are reliable sources of information. What the research team came up with was ‘central generation’ which are a network of power stations with each power station being able to distribute power and energy locally to numerous buildings and homes within the vicinity. By writing this article, Casten and

The energy issues have long been complicated and highly discussed for energy affects many aspects of the modern society and people’s daily lives, e.g. oil prices, energy reserves, monthly electricity bills etc. Since my father is working in the Investment and Marketing department of China Citi Bank, I was encouraged to read energy-related reports and journals from the newspapers when I was growing up. Later on I became interested in the energy market, including energy commodity trading and portfolio management. Furthermore, as a

For several years now the European Union, the largest regional trading block in the world, has been trying to liberalize its energy market, replacing the markets of its 27 member states with a single continent wide market for electricity and gas. The first phase of liberalization went into effect in June 2007. When fully implemented, the ability of energy producers to sell

Independence of the State Electricity Regulatory Commission has continued indefinable in reality. Scopes to restoration the current regulatory structure may be discovered with the aim to keep the State government at arm’s length from the tariff setting application. It is necessary that the current controlled structure of the distribution sector be transformed and competition be stimulated. One of the ways to obvious this is to distinct posture and gratified businesses of the distribution segment. Regulatory commissions should alert the consumers about the rationale of tariff setting and notify them before every tariff amendment. Every concerned investor should admit the economic significance at a national level of the present crisis. Political will of the governments (i.e., State and Central) is vital to overwhelmed many of the challenges.

ppliers Blueprint # 6 – Transforming the Power Sector Issues • The government-controlled power sector has become heavily politicized, with the government unable to improve its poor performance • Consumers, both government & private, are able to resort to power theft & non-payment without fear of repercussions • Multiple problems, particularly a government-controlled tariff and high system losses, have made the power sector unattractive for new investment Recommendations • High-voltage power transmission to continue being a government responsibility via the state-controlled NTDC, with open-access for all power suppliers • All power distribution & marketing companies (DISCOs) be privatized and allowed to operate in a competitive power market with open-access for third-party power suppliers • Power theft be declared a “non-bailable offence” with a high penaltyBlueprint # 7 – Growing Power Generation Capacity Issues • Pakistan’s power generation capacity of 20,000 MW (effective 14,000 MW) will require to be at least doubled in the next 15 years • The state-owned thermal power plants (5,000 MW) have low conversion efficiencies and are expensive to maintain and operate • The private-sector power plants (currently 8,000 MW) are more efficient but are under-utilized due to fuel availability & circular debt problems Recommendations • All thermal power generation based on oil, gas and coal to be in the private sector, and