Electricity market competition alive despite restrictions

Though the main interest in retail electricity market data released on a monthly basis by LAGIE, the Electricity Market Operator, and IPTO, the power grid operator, is generally focused on the market shares held by main power utility PPC and rival independent suppliers, a closer look at the data provides insight into various trends.

The leeway offered to independent suppliers for market share gains may be limited, for a variety of reasons, as was recently reported by energypress, but, in spite of these limitations, PPC is steadily losing about one percent of its market share every month.

Competition is not waning as a result of the limited leeway offered to independent suppliers. On the contrary, these suppliers are moving to expand their client bases through carefully thought out moves.

PPC’s slower-than-expected overall market share reduction, now at about 85 percent, is greatly connected to market shares held in high and medium-voltage supply. LAGIE data shows that PPC’s market share in the high-voltage market rose from 10.09 percent in January to 14.45 percent in May.

In the mid-voltage market, involving major-scale enterprises consuming major electricity amounts, PPC’s market share fell from 18.78 percent in January to 16.79 percent in May. Among the major independent suppliers, Heron leads with 2.43 percent in May, up from 1.5 percent in January, and is followed by Protergia, up to 2.27 percent in May from 1.34 percent in January. Next in the rankings, Elpedison’s share reached 1.88 percent in May from 1.07 percent in January.

Interestingly, none of the independent suppliers registered a high-voltage market share decline between the months of April and May, the LAGIE data showed. Overall, independent suppliers gained 0.97 percent in the high-voltage category compared to PPC’s surrender of 0.25 percent between April and May.

NOME auction electricity amounts and prices offered as well as other factors such as PPC’s 15 percent discount offered to punctual customers and this corporation’s soft approach towards customers with arrears have helped the still-dominant utility maintain a firm grasp of the market, analysts have noted.