CASE STUDY

Case study on “Energy Company”



Failure of Energy Companies

Natural gas and electricity can be sold to consumers through radical reform, according to state-controlled institutions, by the regulatory bodies, which recognize a decade of free market principles; the energy is no longer working proposals. Set the minimum supply of Energy Company's obligation to ensure that lights do not go out of action; new capital has been the failure of banks to prevent them in the requirements of the financial crisis, reminiscent of.

Energy experts said the suggestion that regulators "very turn.” This has been an open advocate of one of the largest energy market that the company can be left to build enough low-carbon forms of generation of new power stations to ensure energy supply and reduce carbon dioxide emissions. However, only 2,000 million pounds, estimated that by 2020 the proportion of required investment has been made, as volatile energy prices and short supply, have characterized the liberalization of the contract, has made such a big risk too much capital expenditure. It is proposed that energy companies to build new plants receive their guaranteed rate of return. It also wants to increase financial penalties, natural gas suppliers assume, if they cut off customers.

Chief Executive Alistair Buchanan admitted to the Guardian: "We live in a different world of energy.” It is understood that he has the ability to amend the market to provide the necessary investment in view of the financial crisis. It also adds a carbon tax, which would enable the construction of new reactors in the economy, for example, is increasing. Government, the Government said last month that it is open concept, will provide additional carbon tax, the budget next month the details of the other energy reforms.

Professor Dieter Helm, an energy economist at Oxford University, said: "This is a remarkable volte-face recognition of an open market will not achieve its goals, they do not oppose the idea of market intervention, and that will be involved. The irony is incredible. "Some people warned that Britain may begin to see the power plants by 2015 and natural gas supply shortage, unless energy companies operate in the reform. Requires huge investment to replace the old coal and nuclear power plants would be closed soon and meet renewable energy by 2020, the country's power from the third objective. North Sea gas reserves are declining, making the UK more dependent on unreliable imports.

In the next two to three months supply of natural gas, power availability, we stand in a rich, "Buchanan said.” The problem is that the speed of deterioration. We will get down to historically low levels of plant profit margins, when you start asking whether you have enough power stations. "Buchanan said, there is a " two-year "window, in which to take action, otherwise the consumers will have to pay the bills rise steeply need to maintain energy supplies. " crisis tactics will be paid by the consumer's investment in the last minute . The regulator of the most radical suggestion is the ...