Competition in UK generation-an Eastern perspective

When privatisation of the UK electricity industry began in 1990, it was the generation and supply (>1 MW) sectors which were initially opened up to the greatest degree of competition for new business. In the brief period since then, the electricity market in the UK has become extremely competitive, giving rise to some of the most radical and dynamic utility industry restructuring and innovative regulation. This article explores some of the issues in each sector and identifies the more significant long-term trends which the author believes are driving the dramatic structural changes observed today. As well as competition in generation, the article looks closely at the critical relationship between electricity generation and gas, the growing influence of environmental pressures and the impact of commercial forces on the structure and management of the industry. Where appropriate, to illustrate his point, the author has drawn on the strategy of his own organisation, Eastern Group, which is an integrated electricity and gas company.