Discuss the findings of the OFGEM report with regards to the UK energy Coursework

Discuss the findings of the OFGEM report with regards to the UK might foodstuff and discuss if more than competition between the big six UK energy faithfuls may benefit UK consumers - Coursework ExampleHowever, the fact that consumers dont complain about the market trading operations provokes thinking that the market is fair to both sullyers and sellers. But this is not the case since consumers silence might be led by the inelasticity of demand. The main mandate of OFGEM is to aline rules and regulations, implement them and maybe punish firms who act against customer satisfaction. With close link t the government, OFGEM ensures that energy regulatory system remains sound in that it protects consumers as well as ensuring a cost effective investment. So far, OFGEM has initiated new entrant protection plans such as regulating the big six firms tariff plans made to bar customers from shifting. As matter of fact, each policy that OFGEM, as it will be shown later in this essay, redu ces the big firms business leader making the environment better for consumers and new entrantsThe UK energy sector is divided into three sections energy generation, energy transportation and energy supply. The three sectors are unfold and allow other firms to enter. However, the six firms tend to combat the market making it hard for new entrants. As matter of fact, government does not produce energy in UK, neither does it control price. Therefore, the quantity of energy supplied barely depends on market forces and so does the price. The existence of several suppliers gives the buyer an opportunity to choose where to buy from. The big six offer many options for customers to choose from. There are also independent suppliers.As noted earlier, prices are higher than the competitive market price, and increase more than the cost of production. The price of gas and electricity showed an increasing trend between 2007 and 2013, and is expected to rise higher by 2020 if not regulated. This gain signifies a rise in suppliers power to raise prices and hence, a prove that the market is not a competitive market twist (Sloman and Garratt 2013). Moreover, firms in the generation