The UK Economy and Its Effect on the Utilities Industry

Within this time of economic instability the utilitiessold, despite the credit crunch, for £4.2 billion
industry is being hit alongside all other sectors. Butand it looks like others many follow suit and sell up.
how much of an effect is the credit crunch reallySome however are saying that this purchase price is
having on the sector and the people who workfar too high and may not be rewarded at the 2009
within it? Unfortunately dramatic effects on theregulator price review.
utilities market are going to seen much more clearlyNevertheless jobs in the sector are reasonably
than perhaps in other sectors. This is because utilitiessecure. For example Water jobs such as engineers,
are a part of everyday life for everyone in the UK.technicians and managers are on the increase. Also,
At present, household utility bills are soaring acrosswith the government putting pressure on utility
the board particularly utilities services such gas,companies to find greener alternatives and
electric and transport and arguably utilities servicessustainability, there are also great numbers of roles
such as telecommunications (i.e. mobile and landlinegrowing in the area of research and development.
phones) will be hit too.This is the same with gas jobs and jobs in the
On average it is believed that a household now paysenergy industry as a whole, such as nuclear jobs. In
around £330 for its water bills per annum. Infact, as fuel prices rise dramatically, there is more
April the average water rates increase wasand more investment being put into finding new
£18, which equates to a rise of 5.8%. Energygreener energy sources and improved ways of
bills have also grown, this time by around 15%, sodealing with current environment issues relating to
that the average household is now paying overthe utilities sector.
£1000. Although many consumers doubt thatWith all of these factors in play it can be seen that,
they are receiving any added benefits from their billdespite the credit crunch and current downward
increases. In the case of the water rate increaseseconomic trends, the utility industry is remaining a
they have been agreed by OFWAT, the industrystrong employment sector across the board. After all
regulator. Bill increases are seen to be necessary toeveryone is going to need electricity, gas and water
improve the industries infrastructures. It is also said, indespite increases in bill prices. These price increases
the case of water companies, that OFWAT hasensure that investment is made into utility companies
been working hard to keep prices down and if thisin order to find cheaper, sustainable alternatives. Also
wasn't the case costs would have been evenas the various companies compete within the sector
greater.a more skilled workforce is vital. This means that
Despite the growing charges, the utility industries, andjobs increase, especially in areas connected to
therefore jobs within the sector, are looking fairlyresearch and development of new and emerging
positive. For example, recently Southern Water wastechnologies, and salaries remain competitive.