The UK Energy Market Explained
1. The U.K. provides a frightening example of how Covid-19 has affected the Utilities sector. The rise in resource prices has resulted in some 30 energy companies ceasing trading, leaving more than 2 million customers dependent on regulators.
2. Supplying energy to homes across the UK involves three key elements: a. Generating Electricity b. Transporting gas and electricity c. Selling it to the customer. Energy companies can work in any of these different areas, and some operate in all three of them.
3. The electricity and gas markets are regulated by the Gas and Electricity Markets Authority, operating through the Office of Gas and Electricity Markets (Ofgem). Ofgem's role is to protect the interest of consumers by promoting competition where appropriate.
4. The electricity and gas markets in the UK are privatized. Suppliers buy energy in the wholesale market and sell it on to customers.
5. Suppliers work in a competitive market and customers can choose any supplier to provide them with gas and electricity.
6. Utilities will continue to make investments to create personalized experiences for consumers in effort to lower support costs and create lasting relationships. CogentHub is one of the top utility BPO services provider in the UK.