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Electricity Market
Asked by Anonymous
Asked on 10 Jul 2019
Why has the market opened up to so many retailers?
In the past there was only SP. Now have like 13 retailers?
Answers (2)
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Alber
Level 4. Prodigy
Answered on 12 Jul 2019
From the proposed articles on EMA website. The Open Market is rolled out in stages and only recently to residential households. The number of retailers as it seems is to provide:
Competition between retailer will drive better prices.
More innovation may lead to new products and price plans
Traditionally, in many other markets there will be some form of consolidation over time but for now, seems like consumer gets to benefit from such competition.
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Milly Fbk
Level 4. Prodigy
Answered on 13 Jul 2019
Why?
Because there's profits to be made and the barriers to entry is lowered then before.
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Alber
31 Oct 2019
That's not quite true. The electricity market is a low-margin business. The true cost of electricity can be see in the EMC website. The half hourly consumption along with the price of third-party costs. Throwing in promotions and discounts - It doesn't seem like it is a sustainable way to maintain and keep the business going. In all electricity markets, there are consolidation in the business. Similarly to telcos, there is a sudden increase in the number of retailers. That will change I supposed.