The British Utility Markets Report Ed 3 2006

Content

• I. Executive Summary - Electricity
• II. Introduction - The Electricity Supply Industry in the United Kingdom
  • Electricity Demand: 1970 to 2005
  • Generating Capacity
  • The Fuel Mix of Electricity Generation
  • Decline of Coal Generation
  • Future Supply of Electricity
  • Reduction in Emissions
  • Price Trends
  • Productivity in the Energy Industries - Electricity, Nuclear, Gas and Coal
• III. Capital Expenditure
  • Reliability of the Systems
  • Performance Standards
  • The Role of Ofgem in Approving Capital Expenditure
  • Levels of Investment in Networks
  • New Construction of Transmission Infrastructure
  • Replacement and Maintenance of Transmission and Distribution Assets
  • Improving Network Performance
  • Transmission Maintenance Costs
  • Capital Expenditure in Transmission
  • Capital Expenditure in Distribution
  • The Generating Plant
  • Future Generating Capacity
  • Coal-fired Generation
  • CCTF Recommendations
• 20.5 GW of Opted-in Plant
  • 11 GW of Opted-out Plant
  • Britain's Nuclear Industry
  • Safety
  • The Nuclear Legacy
  • Capital Investment in Generating Capacity
• IV. Environmental Issues and Legislation
  • LCPD - Large Combustion Plant Directive
  • The Technology and Abatement Measures of Reducing Pollutant Specified in the
  • LCPD
  • ETS Emissions Trading Directive
  • Carbon Sequestration
  • Options for Carbon Dioxide Transport
  • Options for Carbon Dioxide Storage
  • Enhanced Oil Recovery (EOR)
  • Environmental Risks of Carbon Sequestration
• V. The Structure of the Electricity Industry in the United Kingdom
  • The Electricity Sector in 2005
  • Restructuring and Consolidation in the UK Electricity Industry
  • The Electrical System - Five Elements
  • Generation
  • Transmission
  • Distribution
  • Supply
  • Outsourced Services
  • Electricity Trading System
  • Scotland
  • Northern Ireland
  • Offshore Companies
  • Jersey Electricity
  • Guernsey Electricity
  • The Manx Electricity Authority
• VI. Corporate Structure of the Power Market
  • The Networks and Energy Companies in the UK in 2006
  • NationalGrid
  • CE Electric UK
  • Central Networks
  • EDF Energy
  • Scottish and Southern Energy (SSE)
  • Scottish Power Energy Networks
  • Northern Ireland Electricity (NIE)
  • United Utilities
  • Western Power Distribution
  • Ownership Changes
  • Consolidation
  • International Mergers and Acquisitions in 2005
  • Electricity Suppliers
  • Electricity Suppliers' Shares of the Domestic Market
  • The Electricity Suppliers' Inroads into the Gas Market
• VII. Power Plants in the UK
• VIII. Regulation and Legislation
  • Ofgem's Governance
  • British Electricity Trading and Transmission Arrangements (BETTA)
  • Forwards and Futures Contract Market
  • Short-term Bilateral Markets (Power Exchanges)
  • Balancing Mechanism
  • Imbalances and Settlements
  • Gas Market
  • Electricity Market Opening
  • ELEXON
  • Electricity Exchanges
  • APX Power UK
  • IPE International Petroleum Exchange
  • Price Control Regulation
  • Transmission Price Control
  • Distribution Price Control
  • Customer Service - Electricity and Gas
• IX. Consumers
  • MPANs
• X. Switching in the Electricity and Gas Market
  • Dual Fuel, First And Second Tier Accounts
  • E-business and Internet selling
  • Consumer Spending Patterns
• XI. SWOT Analysis of Major Players
  • RWE
  • E.ON - Powergen
  • EDF/LE Group
  • SSE
  • United Utilities
  • BGT
• XII. MAP (Meter Asset Provision) and MAM (Meter Asset Management)
  • The Future of MAPs and MAMs
  • Electricity Metering Protocol
  • Electricity Act 1989 as Amended by the Utilities Act 2000
  • Distribution Licence
  • Supply Licence
  • ELEXON Accreditation
  • Definition of MAP and MAM
  • MAP
  • MAM
• XIII. Wind Power in the United Kingdom
  • Market Size
  • Future Development
  • Future Targets
  • Government Support
  • Development Programmes
  • Offshore Wind Power
  • R1
  • R2
  • Manufacturing Base
  • Manufacturers of Wind Turbines >50kw
  • Turbine Components
  • Small System Suppliers
• XIV. Profiles of Major Players
  • E.ON UK
  • Previous history
  • RWE npower
  • Previous history
  • International Power
  • Previous history
  • British Energy
  • Previous history
  • BNFL Magnox Generation
  • Previous history
  • HV Transmission Company
  • Previous history
  • Scottish and Southern Energy plc (SSE)
  • Previous history
  • Scottish Hydro Electric
  • Previous history
  • South Wales Electricity plc (SWALEC)
  • Previous history
  • ScottishPower Plc (SP)
  • Previous history
  • Manweb plc
  • Previous history
  • EDF Energy
  • Previous history
  • Seeboard Plc
  • Previous history
  • Edison Mission Energy
  • Previous history
  • Southern Electric Plc
  • Previous history
  • SWEB South Western Electricity plc
  • Previous history
  • TXU Europe (in administration)
  • (Formerly Eastern Electricity)
  • Previous history
  • East Midlands Electricity Plc
  • Previous history
  • GPU Power UK
  • Previous history
  • Northern Electric Plc
  • Previous history
  • Northern Ireland Electricity
  • Previous history
  • United Utilities
  • Previous history
  • Western Power Distribution
  • Previous history (South West England)
  • Previous history (South Wales)
  • Yorkshire Electricity Group Plc
  • Previous history
  • Jersey Electricity Co Ltd
  • Alderney Electricity Ltd
  • Manx Electricity Authority
• XV. OFGEM - The Regulator for England, Scotland and Wales
  • OFREG - The Northern Ireland Regulator,
• XVI. Appendix I- Economic and Energy Statistics
• XVII. Appendix II Electricity Licences July 2006
  • Electricity Distribution (17)
  • Electricity Generation (40)
  • Electricity supply
  • Domestic and Non-Domestic (28)
  • Non-Domestic (36)
  • Electricity Transmission (3)
• XVIII. Executive Summary - Gas
• XIX. The United Kingdom in the European gas market
• XX. UK Gas production and demand 1990 to 2006
  • Natural gas demand forecasts 2004 to 2010
• XXI. Natural gas demand by sector, 1978-2002
• XXII. Market structure
  • The development of the natural gas industry in North America
• XXIII. The liberalisation of the UK natural gas market 1986-1991
  • EU Gas Directive
• XXIV. Price trends
• XXV. Productivity in the energy industries - electricity, nuclear, gas, coal
• XXVI. UK market restructuring, deregulation and privatisation
• XXVII. The UK industry structure in 2006
  • Production
  • Imports projects to the UK
  • Offshore pipelines
  • UKCS (UK Continental Shelf)
  • Zeebrugge Interconnector
  • CATS
  • SEAL and SILK
  • Langeled pipeline to Norway
  • Netherlands interconnector
  • Pipeline to Ireland
  • Storage of natural gas
  • LNG terminals
  • Transmission and distribution pipelines within the UK
  • Independent Gas Transporters (IGT)
  • Balancing and control
  • Uniform Network Code
  • Suppliers
  • Local Distribution Zones, LDZs
  • National Grid
  • Scotia Gas Networks (SGN)
  • Wales and West Utilities (WWU)
  • Northern Gas Networks (NGN)
  • Charging arrangements
  • Energy exchange
  • XXVIII. Revenue, capital expenditure and price controls in the regulated sector
  • National Grid Gas (NGG NTS) allowances
  • Gas distribution network (GDN) capital expenditure
• XXIX. Market share and switching
• XXX. The gas and electricity regulators
  • OFGEM - regulator for England, Scotland and Wales
  • Ofgreg - regulator for Northern Ireland
• XXXI. The major gas companies
  • National Grid plc
  • Financial performance
  • Centrica plc
  • Centrica's businesses in the UK
  • Centrica businesses in Europe
  • Luminus
  • SPE
  • Luseo Energia
  • Oxxio
  • Centrica businesses in North America
  • Direct Energy
  • Direct Energy Business Services
  • BG Group plc
  • Exploration and Production
  • LNG
  • Transmission and distribution
  • Power Generation
• XXXII. Gas Licensees
  • Appendix I
  • Gas Interconnector
  • Appendix II
  • Gas Shipper
  • Appendix III
  • Gas Supplier Domestic & Non-Domestic
  • Appendix IV
  • Gas Transport
  • Appendix V
  • Independent Gas Transporters
  • Appendix VI
  • Approved Gas Meter Installers
  • Appendix VII Gas Statistics
  • XXXIII. Executive Summary - Water and Waste
• XXXIV. Market size - water and waste
  • Revenue
  • Water and waste
  • Price determinations 1990-2000
  • Price determinations 1990-2000
  • Capital investment
  • Customer base
  • Metering
• XXXV. The players in the water and waste markets in the United Kingdom
  • Ownership of the private companies
  • Domestic mergers and acquisition
  • Foreign takeovers
  • Non-regulated business
• XXXVI. Outline of the industry
  • Historical development of the industry in England and Wales
  • Regulation in England and Wales
  • Potential conflict between regulators
  • Licensing
  • XXXVII. Water quality
  • Environmental improvements
  • Environmental regulation
  • XXXVIII. Leakage
  • International comparison of water leakage
  • Economic leakage level (ELL)
  • Leakage in the UK
  • Leakage by company
• XXXIX. Tariff setting, bills and standards of service
  • Average household bills
  • Direct debit accounts
  • Standard setting
  • Customers' interests - Customer Service Committees
  • XL. Market competition in the water and sewerage Industry
  • The Competition Act 1998
  • Contracting out
  • Inset appointments
  • Cross-border supplies
  • Unregulated supplies
  • Common carriage
  • Private supplies
  • XLI. Scotland and Northern Ireland
  • Regulators in Scotland
  • Northern Ireland
  • XLII. Customer opinions about the UK water service
  • Overall satisfaction with tap water supply
  • Overall satisfaction with sewerage service
  • Perceived drivers of satisfaction
  • Value for money of tap water supply
  • Value for money of sewerage service
  • Use of water in the home
  • Use made of the water environment
  • Attitudes towards the water environment
  • Attitudes towards the water industry
  • Environmental priorities
  • XLIII. EU Water and Waste Directives
  • XLIV. Financial analysis of water companies in England and Wales
  • Financial ratios
  • Capital expenditure
  • Gross capital investment by company
  • Gross capital investment by company
  • Gross capital investment
  • Profit and loss
  • Current cost turnover and operating profit by service
  • XLV. Company profiles
  • Company contact addresses, England and Wales
  • Water and Waste companies
  • Anglian Water Group Plc
  • Dwr Cymru (Welsh Water)
  • Northumbrian Water Ltd
  • Severn Trent plc
  • South West Water
  • Southern Water
  • Thames Water
  • Failure & undertaking
  • Infrastructure & investment
  • Bills
  • United Utilities plc
  • Wessex Water
  • Yorkshire Water Services Ltd
  • Scottish Water
  • Northern Ireland Water Service
  • Water only companies
  • Albion Water Ltd
  • Bournemouth & West Hampshire Water Plc
  • Bristol Water Plc
  • Cambridge Water Company Plc
  • Cholderton & District Water Company Ltd
  • Dee Valley Water Plc
  • Essex & Suffolk Water
  • Folkestone & Dover Water Services Ltd
  • Hartlepool Water Plc
  • Mid Kent Water Plc
  • Portsmouth Water Plc
  • South East Water Plc
  • South Staffordshire Water Plc
  • Sutton & East Surrey Water Plc
  • Tendring Hundred Water Services Ltd
  • Three Valleys Water Plc
  • Islands
  • Council of the Isle Of Scilly
  • The States of Guernsey Water Board
  • The Jersey New Waterworks Company Limited
  • Isle of Man Water Authority
• List Of Figures
  • Figure II.1 The Consumption, Availability and Generation of Electricity in the UK (
  • 2005, in TWh)
  • Figure II.2 Net Imports of Electricity 1995 to 2005 (in TWh)
  • Figure II.3 Electricity Generating Capacity 1982 to 2004 (MW)
  • Figure II.4 Energy Sources of Electricity Generation in the Public Supply System 1980 to
  • 2005 (in TWh)
  • Figure II.5 Fuel Projections 2000 to 2020
  • Figure II.6 Real Price Index of Gas, Electricity, Coal, HFO/LFO, Heating Oil, RPI all items
  • 1980-2005
  • Figure II.7 Price Composition of Electricity and Gas
  • Figure II.8 Productivity of the Electricity, Nuclear, Gas and Coal Industries in UK
  • ( thousands per employee at 1995 prices)
  • Figure III.1 Electricity Transmission Network Capital Expenditure 1990-2005. forecast
  • 2005/06-2007/08, expenditure allowed by Ofgem 2007/088-2011/12
  • Figure III.2 Electricity Distribution Network Capital Expenditure 1960-2005 (Expenditure
  • Allowed by Ofgem 2006-2010)
  • Figure III.3 Annual Generating Capacity Built and retired 1892-2010 (MW)
  • Figure III.4 Fuel Shares of Electricity Generation 2005-06 (only during winter)
  • Figure III.5 EP 68 Projection of the UK Generating Capacity by Individual Energy Sources
  • Figure IV.1 Carbon dioxide-Enhanced Oil Recovery with Water/Alternating Gas (WAG)
  • Injection Sweeps Additional Oil to the Recovery Well.
  • Figure VI.1 Geographical Distribution of Networks in the UK
  • Figure VIII.1 Overview of BETTA Market Structure
  • Figure IX.1 Example of an MPAN
  • Figure X.1 Monthly Customer Transfers in the Electricity And Gas Market from April
  • to March 2006
  • Figure X.2 Market Share Of Entrant Suppliers (Second Tier)
  • Figure XIII.1 Offshore Wind Farms in the UK 2004
  • Figure XIX.1 Production, imports, exports, consumption of natural gas in Western Europe
  • Rcm 2005
  • Figure XX.1 Natural gas production and demand in the United Kingdom, 1965 to 2005, Bcm
  • Figure XX.2 Natural gas demand forecasts for the United Kingdom, 2004 to 2010, TWh
  • Figure XX.3 Sources off natural gas for Britain, 1990, 2006, 2010.
  • Figure XXI.1 Growth of natural gas demand by sector 1980-2005
  • Figure XXII.1 Global natural gas consumption by region, 1965-2004
  • Figure XXIV.1 Electricity, gas, coal, heating oil, HFO/LFO real price indeces; 1990 = 100
  • Figure XXV.1 Productivity of the electricity, nuclear, gas and coal industries in the UK,
  • 1980-2003
  • Figure XXVII.1 Structure of the gas industry
  • Figure XXVII.2 Gas storage projects under construction or planned
  • Figure XXVII.3 The National gas transmission system
  • Figure XXVII.4 The LDZs
  • Figure XXVII.5 Areas of the regional gas distribution networks
  • Figure XXVIII.1 NGG NTS Capital expenditure allowance from 2007/08 to 2011/12
  • Figure XXVIII.2 Historical capex (including repex) by National Grid to 2005, forecast for
  • new GDNs 2007 and 2008
  • Figure XXXIV.1 Revenue England and Wales, Scotland and Northern Ireland 1999-2005,
  • 2004-05 prices
  • Figure XXXIV.2 Revenue for water and waste in England, Scotland, Wales and Northern
  • Ireland, 2001-2005
  • Figure XXXIV.3 Capital investment in the water and waste industry 1981-2010
  • Figure XXXIV.4 Percentage of household connections with meters 1991-2005
  • Figure XXXV.1 The main plays in the UK water and waste market, million 2004-05
  • Figure XXXV.2 The geographical distribution of water and waste companies in Britain
  • Figure XXXVII.1 Environmental improvements
  • Figure XXXVIII.1 International comparison of water leakage 1999-2004
  • Figure XXXVIII.2 Industry total leakage Ml/d, 1994-95 to 2003-04
  • Figure XXXVIII.3 Leakage by company, pipe leakage and distribution losses, 2003-04
  • Figure XLII.1 Overall satisfaction with tap water supply
  • Figure XLII.2 Overall satisfaction with sewerage service
  • Figure XLII.3 Drivers of overall satisfaction correlation analysis
  • Figure XLII.4 Value for money of tap water
  • Figure XLII.5 Value for money of sewerage service
  • Figure XLII.6 Use of water in the home
  • Figure XLII.7 Use made of thee water environment
  • Figure XLII.8 Attitudes towards the water environment
  • Figure XLII.9 Agreement and disagreement with attitudinal statements
  • Figure XLII.10 General issues needing attention
  • Figure XLII.11 Environmental issues in urgent need of attention
  • Figure XLIII.1 Summary of the EU environmental directives
• List Of Tables
  • Table II.1 The Generation, Transformation and Consumption of Electricity 2004 and
  • (in TWh)
  • Table II.2 Supply from the Public Sector and Auto-producers 2004 (in TWh)
  • Table II.3 Carbon Dioxide Reductions by 2020
  • Table II.4 Real Price Fall from 1980 to 2000 and Rise from 2000-2006 in Electricity, Coal,
  • HFO/LFO, Heating Oil, RPI all items
  • Table III.1 Revenue, Allowed Operating Costs (Opex) and Capital Expenditure (Capex)
  • Allowances for NGET, SHEL and SHTL, 2006-07, 2007-08 and 2011-12
  • Table III.2 Status of Nuclear Sites
  • Table IV.1 Status of FGD Installations in the UK Coal-fired Power Stations (March 2004) .
  • Table VI.1
  • Table VI.2 Changes in Ownership
  • Table VI.3 Supplier Shares of the Electricity Market 1998-2006 (in %)
  • Table VI.4 British Gas domestic gas market share in March 2001
  • Table VI.5 Domestic Gas Market Shares in March 2006
  • Table VII.1 Power Stations in the UK, May 2006
  • Table IX.1 Regional Distribution of MPANs
  • Table X.1 Number of First and Second Electricity and Gas Customers in the UK (excluding
  • Northern Ireland)
  • Table X.2 The Average Annual Household Electricity Bill
  • Table XIII.1 Project analysis in UK, 2003-04
  • Table XIII.2 Operational grid connected wind projects in the UK 2006
  • Table XIII.3 New Onshore Wind Power Projects under Construction in 2006
  • Table XIII.4 The Projected Total of UK Wind Power in 2010
  • Table XIII.5 Offshore wind farms UK 2006
  • Table XIV.1 International Shares in the Overseas Existing or Planned Plants
  • Table XIV.2 Subsidiary Undertakings
  • Table XVI.1 Electricity Statistics
  • Table XVI.2 Economic Statistics
  • Table XXIII.1 In 1998, the EU enacted the Gas Directive to come into force in 2000
  • Table XXXI.1 Revenue and profit in the UK gas business, National Grid Gas, 2005 and
  • Table XXXI.2 History of National Grid plc
  • Table XXXI.3 Centrica plc revenue and profit, 2005 and 2006
  • Table XXXI.4 BG Group Revenue and profit, 2003, 2004, 2005
  • Table XXXII.1 Gas Statistics
  • Table XXXIV.1 The water and waste market in the United Kingdom by region, 1999-2005,
  • million, 2004-05 prices
  • Table XXXIV.2 Total market size for England and Wales water and waste, million
  • Table XXXIV.3 Price determinations by Ofwat in England and Wales, 2000-2005
  • Table XXXIV.4 Price determinations by Ofwat in England and Wales, 2006-2010
  • Table XXXV.1 The water and waste companies by revenue, 2004-05, million
  • Table XXXV.2 Consolidation of the water and waste industry in England and Wales,
  • between 1989 and 2005
  • Table XXXV.3 Revenue of the UK water and waste companies, 2000-01 to 2004-05
  • Table XXXIX.1 Average household bills for water and sewerage 2006-07
  • Table XLIV.1 Financial Indicators - Private water and waste companies
  • Table XLIV.2 Gross capital investment 2001-02 to 2004-05, millions
  • Table XLIV.3 Gross capital investment 2001-02 to 2004-05 by purpose, millions
  • Table XLIV.4 Total new fixed assets formation 2001-02 to 2004-05, millions England and
  • Wales
  • Table XLIV.5 Infrastructural renewals 2001-02 to 2004-05, millions England and Wales
  • Table XLIV.6 Total capital investment, England and Wales, 2001-02 to 2004-05
  • Table XLIV.7 Current turnover and current cost operating profit, 2001-02 to 2004-05,
  • England and Wales
  • Table XLIV.8 Current cost turnover and operating profit by service and company
  • to 2004-05, England and Wales
  • Table XLIV.9 Cash flow statement 2001-02 to 2004-05, England and Wales
  • Table XLIV.10 Balance sheet at 31 March, 2001-02 to 2004-05, England and Wales
  • Table XLIV.11 Net debt and gearing by company at 31 March, England and Wales
  • Table XLV.1 Anglian Water Group Plc
  • Table XLV.2 Dwr Cymru (Welsh Water)
  • Table XLV.3 Northumbrian Water Ltd
  • Table XLV.4 Severn Trent plc
  • Table XLV.5 South West Water
  • Table XLV.6 Southern Water
  • Table XLV.7 Thames Water
  • Table XLV.8 United Utilities plc
  • Table XLV.9 Wessex Water
  • Table XLV.10 Yorkshire Water
  • Table XLV.11 Scottish Water
  • Table XLV.12 Northern Ireland Water Service