The advent of gas instead of thermal and hydropower electricity happened because it was easier available. It was cheaper and safer to deploy. So when we became environmentally conscious we found out another golden choice. It is much greener than the thermal energy. It is among the greenest fossil fuels available. And in most countries with high power consumption such as the US, UK, China, Russia, India, etc., it is available on site. That means production and distribution is less strain on the economy and creates more jobs. In addition to that natural gas –
Comfortable: General convenient because clean nature and efficiency (eg rapid heating).
Reliable: It is more reliable than electricity or solar power
Convenient: It is convenient because it is fast and efficient. That means faster cooking, faster drying and endless heat or hot water
Economical: In most countries, is the cheapest form of energy. Not only that. Only 30% of the electricity is actually used by consumers. However, 90% of the resource is actually used by consumers.
In countries like the UK, the utility industry is more than 100 years old. The UK gas industry as we know it today was born in 1980. In 1982, Oil and Gas (Enterprise) Act opened the door to the privatization of the gas industry in the UK. However, the market was slow to become competitive. Private players slowly began to enter the market. They were careful. The Utilities Act 2000 and the formation of a new regulatory helped. At the end of 2003 about 50 private suppliers active in the UK. This allowed consumers to compare business gas prices. Many domestic and business ended switch gas suppliers. Value Chain UK gas industry has five players –
Manufacturers: They are gas extractors and can be anywhere in the world. Given the high domestic consumption in the UK is on the verge of becoming a net importer.
Traders: It dealt with energy and trading companies.
Retailers As retailers they are the ones that put domestic and business gas prices. They are aimed to compare prices. They are all practical sense our target to switch gas suppliers also.
Price Reporting Agencies: The gas industry works long multi billion dollar 3 to 4-year contract. These organizations play an important role in determining price indices. This is an important input for long-term deals.
Consumers Business and household gas consumers are the target audience. Net retail comes from these consumers.
The UK is one of the largest gas markets in the world. In Europe, the UK is second only to Germany in gas requirements. The domestic supply of gas is no longer able to meet household and business demand for gas in the UK. This can be confusing to policymakers but manageable. Current disputes over gas price fixing needs to be addressed transparently. When this is done, the UK must ensure the proper management of the volatility of gas prices. Gas storage capacity need to be addressed properly. This will ensure long-term supply chain of gas distribution and will go a long way to control the market sentiments. Supplier and consumer confidence will be restored.