Industry that provides the production and delivery of electric energy
Electric power is transmitted on overhead lines like these, and also on underground high-voltage cables
The electric power industry covers the generation, transmission, distribution and sale of electric power to the general public and industry. The commercial distribution of electric power started in 1882 when electricity was produced for electric lighting. In the 1880s and 1890s, growing economic and safety concerns lead to the regulation of the industry. What was once an expensive novelty limited to the most densely populated areas, reliable and economical electric power has become an essential aspect for normal operation of all elements of developed economies.
By the middle of the 20th century, electricity was seen as a "natural monopoly", only efficient if a restricted number of organizations participated in the market; in some areas, vertically-integrated companies provide all stages from generation to retail, and only governmental supervision regulated the rate of return and cost structure.
Since the 1990s, many regions have broken up the generation and distribution of electric power[citation needed]. While such markets can be abusively manipulated with consequent adverse price and reliability impact to consumers, generally competitive production of electrical energy leads to worthwhile improvements in efficiency[citation needed]. However, transmission and distribution are harder problems since returns on investment are not as easy to find.
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