Kombaiyashii
10-22-2013, 05:33 PM
I live in the UK and at the moment there is in the news a debate between politicians on how to conduct our energy policy.
One side says freeze prices for a year.
The other side talks about some weak freemarket principals like telling consumers to look for a better deal.
So I did some research into starting up my own energy company and this only lead rise to more questions...
In theory I could start up an energy company if I had a load of money and bought a tera-watt hour from the national grid and then sold it onto customers. The only problem is that I have to get an energy licence (issued by our government) to do so. The stipulation is that in order to get this energy licence, I'd need to buy out an existing energy company.
So we've got an oligopoly here. There's no way more competitors can come onto the market, it's a set number of companies.
Secondly, who the hell is the national grid anyway? If all energy companies are buying energy from them, they are a privately run organisation that is floated on the stock market. It turns out that they came from a policy set back in 1957 to form "The central electricity generating board" who's governors were appointed by the minister of power.
One side says freeze prices for a year.
The other side talks about some weak freemarket principals like telling consumers to look for a better deal.
So I did some research into starting up my own energy company and this only lead rise to more questions...
In theory I could start up an energy company if I had a load of money and bought a tera-watt hour from the national grid and then sold it onto customers. The only problem is that I have to get an energy licence (issued by our government) to do so. The stipulation is that in order to get this energy licence, I'd need to buy out an existing energy company.
So we've got an oligopoly here. There's no way more competitors can come onto the market, it's a set number of companies.
Secondly, who the hell is the national grid anyway? If all energy companies are buying energy from them, they are a privately run organisation that is floated on the stock market. It turns out that they came from a policy set back in 1957 to form "The central electricity generating board" who's governors were appointed by the minister of power.