Electricity retailers prepare to contest market shares

The electricity retail market’s major players are expressing cautious optimism about the new market conditions to emerge as a result of the imminent launch of NOME-type auctions for the sector.

Company officials are already at work making their calculations, based on the starting-price estimates for the plan, which has been forwarded for public consultation.

Officials estimate that of the 1,200 MW of electricity to be auctioned off annually, approximately 900 MW will be absorbed by the industrial sector, while the remaining 300 MW will be utilized by supply firms aiming to reduce their purchasing costs and compete more effectively with PPC, the Public Power Corporation.

“The situation has not changed dramatically, but, nevertheless, has improved, and enables us to increase amounts and market shares,” a company official at one of the major players told EnergyPress.

Pundits expect firms to do battle for retail market shares over the next two to three years as the new auction system evolves towards achieving the desired target model. Vertically integrated firms are expected to have the upper hand, with smaller enterprises to follow.