Achieving growth in a competitive marketplace

2034

Introduction In today’s competitive business climate no marketplace is completely static and some markets are more dynamic than others. One which has changed beyond recognition over the years, is that of electricity. Since the start of privatisation in 1989, the UK electricity industry has seen many strategic changes in structure, direction and activity. This represents a new challenge for electricity producers who, at the same time, still concentrate upon producing reliable electricity supplies at low prices for their customers. PowerGen is one of the largest privately-owned electricity generating companies in the world. Before privatisation, the Central Electricity Generating Board (CEGB) owned all of the generating capacity in England and Wales. At privatisation, these assets were split between three competing generating companies, PowerGen, National Power and Nuclear Electric. In addition, new competitors were encouraged to enter the market and construct their own generating capacity. Privatisation has not only introduced competition into the world of electricity generation, it has also introduced it into electricity supply. By the end of 1998, all electricity customers in the UK will be able to choose who supplies them with electricity. Competition occurs when ‘competitors’ supply products that are either similar or substitutable to customers in the…

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