Chapter 1: History

Question 1

When was the first public street light lit?

Answer 1

1881

Question 2

What does the average utility bill look like?

Answer 2

34% - Wholesale energy, supply, profit
22% - Distribution charges
17% - Transmission
23% - Environmental
5% - VAT
5% - Other

Question 3

Climate Change ACT UK?

Answer 3

a. 100% below 1990 levels by 2050

b. 78% below 1990 levels by 2035

Question 4

When did Nationalization begin?

Answer 4

• Electricity act of 1926
• Set up 132kV grid
• Fully integrated in 1938

Question 5

What happen during 1947 to 1957

Answer 5

1947 - British Electricity Authority (BEA) + 15 Area Electricity Boards formed
1955 - BEA becomes Central Electricity Authority (CEA)
1957 - CEA becomes Central Electricity Generating Board (CEGB)

Question 6

What spurred privatization?

Answer 6

Electricity Act of 1989

Question 7

Major events of 1990 privatization?

Answer 7

1. CEGB split into:
   a. National Grid Company (Trans.)
   b. National Power (Gen.)
   c. Power Gen (Gen.)
   d. Nuclear Electric (Gen. - Originally given to National power then Privatized)
2. Area Electric Boards renamed “Regional Electricity Companies”
3. Generators of 1MW are the first of a three phase plan that will begin being privatized
   a. Over 1 MW (1990)
   b. 100kw to 1MW (1994)
   c. under 100 kW (1998-1999)

Question 8

What replaced the old market place “Pool” and when?

Answer 8

2001 - New Energy Trading Arrangements (NETA)
2005 - British Energy Trading and Transmission Arrangements (BETTA)
- Changed again due to the inclusion of Scottish grid in 2005

Question 9

7 Key industry Challenges?

Answer 9

1. Decarbonize the electric industry
2. Decarbonize the economy
3. Network investment
4. Smart metering
5. Innovation based regulation
6. European Target Model
7. Electricity market reform

Question 10

Scottish interconnect bottle neck?

Answer 10

• Cheviot Boundary

Question 11

Major events of 1991 privatization?

Answer 11

1. Scottish electrical industry splits into two vertically integrated entities:
   a. Scottish Power (SP Energy Network)
   b. Scottish Hydro Electric (SSE)

Question 12

Major events of 2000 privatization?

Answer 12

1. The Utilities Act was passed changed the RECs to 14 Distribution Networks
2. Ofgem concludes that too much of the power is held by too feww (1999)
3. “Dash for Gas” add 7.9 GW to the grid decreasing whole sale price on top of already added capacity and an unusually warm winter.

Question 13

When did vertical integration begin and why?

Answer 13

• Late 90’s
• With the introduction of NETA and the recent privatization the generators foresaw a decline in wholesale market price to they bought supply companies as well
  
  • If wholesale goes up -> generators make money
  • if wholesale goes down -> suppliers make money