Competition in metering and related services Relationships between the parties Stakeholder workshop 3 28 August 2014
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
Retailer Metering Coordinator – New retailer New meter cost $300 installed Customer Scrap value of meter $0 Existing New retailer retailer Retailer Alt MC MC Deal ~$150 ?
Retailer Metering Coordinator – New retailer New meter cost $10 pcm Customer Existing New retailer retailer Retailer Alt MC MC Deal ~$5 pcm ?
Retailer MC – Distribution business DNSP monopoly service Customer (eg power quality) Existing Deal ~$2 pcm ? retailer Offer $20 pcm Distribution Retailer business MC Offer $1 pcm (max willingness to pay $3 pcm given alternatives)
Retailer MC – Distribution business DNSP value-added service Customer (eg load control) ...retailer values load control more highly but Existing has an incentive to retailer accommodate DNSP if Value $15 pcm possible Distribution Retailer business MC Offer $10 pcm (based on value vs alternatives)
Retailer MC – Energy services company Customer Existing Energy services retailer company Retailer Deal should happen or MC MC loses revenue and customer might switch...
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.
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.
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
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