Busines Environment Essay Example | Topics and Well Written Essays - 2000 words

Busines Environment - Essay Example Suppliers refer to the companies that directly sell electric power (About the Electric Industry, 2011). Thus the electric industry in the UK can be understood to perform its functions effectively with the help of these stakeholders and have proved to be efficient over the years. However, with the increasing levels of competition in the industry, it has been found that customers have changed their preferences of suppliers. Also, increasing level of prices have led to the consumers plan for savings and hence cutting down on consumption. Thus in the recent years, the UK energy prices have been found to fall down (About the Electric Industry, 2011). The current study focuses on a PEST analysis of the UK electric power industry and hence determines the recent changes that have occurred. Earlier the electric power industry in the UK was under the control of the Central Electricity Generating Board (CEGB). When CEGB was in control of the electric power in the UK, there was not much competition in the market. There were 12 boards in the regional areas that were in charge of the electricity distribution. Also the prices during this time were lower for the consumers to afford. The system being dependent on thermal generation was responsible for around 70 percent of the total production of electricity. With the process of privatization the controlling board was considered to be privatized. Private ownerships and competitive pricing became parts of the new privatized industry that was created in the year 1990. In the new structure the independence of the generators were limited and central planning was lacking in the development of capacity. The prices for the power supply also increased although for significant power consumers the prices reduced after inflation (Stevens, 1995, pp.52-59). Although the new system have several advantages like reduced labor costs, better customer services, reduced borrowing from government as well as alteration in the business culture,