Passing value to customers-on the power of regulation in the industrial electricity supply chain.pdf

Passing value to Introduction
This article maps and analyses the supply
customers: on the chain for industrial electricity. Its main aim is
power of regulation in to explain the appropriation of value in the
chain by considering which firms are powerful
the industrial and what the bases of that power might be.
electricity supply chain The supply chain is best defined as a sub-set
of the generic supply chain for electrical
Joe Sanderson energy. The generic chain can be defined as
the process of converting a primary fuel
source into electrical energy and delivering
that energy to the end user. The specific
supply and value chain under consideration
is, therefore, to some extent defined by its end
customer. In this case, the end customer is an
The author industrial concern from one of the following
sectors: chemicals; food, beverages and to-
Joe Sanderson is a Research Fellow at the Centre for
o; iron and steel; paper; mechanical
Business Strategy and Procurement, Birmingham Business
engineering; mineral products; vehicles; elec-
School, University of Birmingham, Birmingham, UK.
trical engineering; non-ferrous metals;
textiles; and construction. In 1997 these
Keywords
sectors accounted for approximately 32 per
Supply chain, Value chain, Electricity industry, cent of UK demand for electricity (Market-
Competitive strategy, Regulations Lin