Paper 1 Industries Flashcards
When was the water industry privatised?
1989
Most water companies are what type of monopolies…
Regional - customers cannot choose to switch supplier.
Natural - an industry with large economies of scale.
What is the water regulator for water in the UK?
Ofwat
How does Ofwat regulate water in the UK?
sets price limits, performance targets (leakage reduction)
How much water is leaked each day (highlighting the ineffeciency of water regulation?)
2,900 million litres
In 2017 Ofwat attempted to introduce some competition at retail level, meaning…
Firms can now choose their water provider. These are final mile services eg billing.
Ofwat’s 2017 competition introduction lead to market entrance such as…
ConservAqua, EverFlow and Castle Water
Regulatory Failure - How much did infrastructure spending by Ofwat fall by between 2020 and 2021?
15 % (highlighting lack of investment)
How much has been paid in dividends for water companies?
£72 bn
How many times did United Utilities discharge raw sewage into waterways 2021?
80,000
What market structure best describes gas provision in the UK?
Oligopoly
What is the 5 firm concentration ratio of gas supply?
67.8%
What did OFGEM do to stimulate energy competition and reduce dominance of the big six firms?
Deregulated, (many smaller suppliers entered the market).
What did OFGEM introduce pertaining to energy?
The energy price cap (maximum that can be charged for a typical usage electricity and gas for a six month period).
Why did 29 energy companies exit the UK gas market in 2022?
OFGEM introduced a max retail price.
