Oligopoly and possible collusion in the UK domestic utilities market Essay

Oligopoly and come-at-able collusion in the UK domestic utilities market - Essay ExampleUtilities market is essential for every country and any disturbance in the utilities market can have detrimental impacts on the economy of the country. It is of uttermost(prenominal) importance that every country ensures that the organizations involved in utilities market are operating smoothly and fairly. The side by side(p) paper would analyse the domestic utilities market in UK, the organizations involved in providing domestic utilities, and the analysis of the new-fashioned hike in prices of the domestic utilities. The paper would attempt to evaluate whether the rise in price of utilities in domestic utilities market in UK is a result of oligopoly and possible collusion in the market. DOMESTIC UTILITIES grocery IN UK Domestic utilities market in UK is a vast and diverse sector of the UK economy. It includes a sum of companies that provide energy and an new(prenominal)(prenominal) utili ty services. The UK utilities market comprises of the oil, petroleum and gas nuclear power and sear water and waste management renewable energy industries and energy conservation organisations. The utilities market in the UK plays a significantly Copernican in the economy of the country. ... mers, markets traditions, products and knowledge required in order to succeed in the utilities market in the UK are considerably different than those required in other industries. In other industries, the main objective of the companies is to succeed by way of earning more and more profit. The entry in other commercial industries is comparatively easier therefore the number of firms in other industries is high. The competition within an industry is located by the number of firms and the availability of substitutes in the market, and the level of prices is determined by the extent of competition in the industry. Therefore in the commercial industries the prices of products are determined by th e extent of competitiveness of the industry. This situation is exclusively different from that of the utilities market. Utilities market have fewer number of companies in the market therefore there is a clear tendency for high prices for the utility services therefore regulatory authorities play an important role in the utilities market in order to ensure that the prices of services provided to the citizens are reasonable (Simmonds 2000). level(p) though the utilities market is different from commercial, industrial and residential markets it is considerably a big sector in the UK economy. From the perspective of revenue, the UK utilities industry forms a significant proportion of the overall economic growth of the country. In the socio-economic class 2010, the UK utilities industry had keep down revenue of $126.3 billion. The most successful segment in the UK utilities industry is the electricity segment. The total revenue of the electricity segment was $57.6 billion. It has bee n anticipated that the industry will continue to grow and the overall nourish of the UK utilities industry by the end of the