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The New Industry Structure Figure 2.1 New Industry Structure Independent Generator Independent Generator PPC Generators H.T.S.O Independent Supply Co Eligible Customers Eligible Customers PPC Transmission Distribution System Operator PPC Distribution and Supply Non-Eligible Customers Eligible Customers Eligible Customers Electricity Flow Commercial transaction The key feature of this new structure is the distinction that is created between the different sectors of the electricity industry: • generation, where competition is permitted between different generators. • transmission (wires), where there remains a natural monopoly in the ownership of PPC. • distribution (wires) where there remains a natural monopoly in the ownership of PPC • supply (sales to customers) which is opened to competition, initially to a limited category of “Eligible” Customers. 4