[PPT] - Competition in metering and related services Relationships between PowerPoint Presentation

SLIDE 1

Competition in metering and related services Relationships between the parties

Stakeholder workshop 3 28 August 2014

SLIDE 2

Focus for discussion

Retailer Metering Coordinator and relationships with:

New retailer
Distribution network business
Energy services business

...Implications for competition in retailing and energy services and for tariffs to end-customers

SLIDE 3

Retailer Metering Coordinator – New retailer

New retailer Existing retailer Customer Retailer MC Alt MC

New meter cost $300 installed Deal ~$150 ? Scrap value of meter $0

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Retailer Metering Coordinator – New retailer

New retailer Existing retailer Customer Retailer MC Alt MC

New meter cost $10 pcm Deal ~$5 pcm ?

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Retailer MC – Distribution business

Distribution business Existing retailer Customer Retailer MC

Offer $20 pcm Offer $1 pcm

DNSP monopoly service (eg power quality) Deal ~$2 pcm ?

(max willingness to pay $3 pcm given alternatives)

SLIDE 6

Retailer MC – Distribution business

Distribution business Existing retailer Customer Retailer MC

Offer $10 pcm

(based on value vs alternatives)

DNSP value-added service (eg load control) ...retailer values load control more highly but has an incentive to accommodate DNSP if possible

Value $15 pcm

SLIDE 7

Retailer MC – Energy services company

Energy services company Existing retailer Customer Retailer MC

Deal should happen or MC loses revenue and customer might switch...

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Frontier Economics Pty Ltd in Australia is a member of the Frontier Economics network, which consists of separate companies based in Australia (Brisbane, Melbourne & Sydney) and Europe (Brussels, Cologne, London and Madrid). The companies are independently owned, and legal commitments entered into by any one company do not impose any obligations on other companies in the network. All views expressed in this document are the views of Frontier Economics Pty Ltd.

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Frontier Economics Pty Ltd in Australia is a member of the Frontier Economics network, which consists of separate companies based in Australia (Brisbane, Melbourne & Sydney) and Europe (Brussels, Cologne, London and Madrid). The companies are independently owned, and legal commitments entered into by any one company do not impose any obligations on other companies in the network. All views expressed in this document are the views of Frontier Economics Pty Ltd.

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FRONTIER ECONOMICS PTY. LTD. MELBOURNE | SYDNEY Frontier Economics Pty Ltd, 395 Collins Street, Melbourne, Vic 3000

Tel. +61 (0)3 9620 4488 Fax. +61 (0)3 9620 4499 www.frontier-economics.com