Question

With 5 key reasons, justify the Regulation of the Electricity sector

Answer 1

Answer-

Regulation in the electrical industry is created by government or local bodies which the utility firms are to follow the rules as per law.

The reasons are as follows. Government authorities govern the price they charge and terms and conditions of service to consumers.
1)The distribution of the electricity, it's operations and maintenance starting from connection of the grid to meter.
2)The only authorised service segment regulates the sales and service of the power grid.

3)The power plant has three types of electric generating substations which are thermal, hydropower and nuclear power plant.

4)The electricity has three major segments generation of voltage, then transmission and distribution.

5)The generators link to substations which then supply the electricity through a distribution system. When electric power is not regulated it's usage becomes manipulated and shortage of availability. It is a monopoly competitive market conditions and it's users usage vary from person to person so the supply is charged based on the requirement of the consumer.