Published on March 12, 2014
Benefits of Fully Contestable Markets Presentation to the WA Power and Gas Conference Jeff Dimery CEO
2 Overview 1. What are the benefits of Full Retail Contestability (“FRC”)? 2. What needs to be done before we can introduce FRC in the WA electricity market? 3. How do we transition to FRC so customers can enjoy the benefits?
3 Benefits of FRC Biggest benefit for customers is CHOICE!
Choice of retailer • If we set the market up right, new retailers will enter • In Victoria the number of active electricity retail companies has tripled since FRC was introduced
5 Choice of products • Retail competition drives: • Product innovation • Quality service • Efficient pricing
6 Alinta’s East Coast Campaign • 15% ‘pay on time’ discount off usage • No lock-in contract and no exit fees • Integrated marketing campaign: • TV commercials • Online • Trams • Product and campaign has been successful • Alinta has over 135,000 customer accounts in Victoria and South Australia
7 What do we need before FRC? 1. Unsubsidised tariffs which reflect costs 2. Systems to allow customers to switch 3. Stabilise policy environment and review regulatory framework to ensure it’s appropriate for FRC environment If you get the above right – retailers and customers will participate
8 Efficient tariffs are key • Current residential tariffs are subsidised and don’t reflect costs • Without cost reflectivity retailers won’t participate in the market • This needs to be addressed before FRC is implemented • To ensure tariffs remain cost reflective, independent price regulation and ultimately price deregulation is required
9 Investment in systems • Current market can handle about 20 customers switching a day • Post FRC it needs to churn thousands of customers each day • Need to invest in business-to-business systems between network / retailers / market operator to ensure FRC can work
10 Policy and regulatory certainty is needed • Policy certainty and competitive neutrality important • Independent tariff regulation • Regulatory framework should be reviewed to determine whether changes are needed for FRC • Revise legislation which may reflect a single (government owned) residential retailer
11 How do we get there? 1. Develop a plan to achieve cost reflectivity 2. Identify the IT system enhancements required and build it 3. Stabilise the policy environment and review the regulatory framework and start on any required changes Once the above is complete FRC can be introduced and it will result in benefits to electricity customers
Canvas Prints at Affordable Prices make you smile.Visit http://www.shopcanvasprint...
30 Días en Bici en Gijón organiza un recorrido por los comercios históricos de la ...
Con el fin de conocer mejor el rol que juega internet en el proceso de compra en E...
With three established projects across the country and seven more in the pipeline,...
Retailing is not a rocket science, neither it's walk-in-the-park. In this presenta...
Alinta Energy CEO, Jeff Dimery, presents at young energy professionals event | Alinta Energy
View Jeff Dimery’s professional profile on LinkedIn. LinkedIn is the world's largest business network, helping professionals like Jeff Dimery discover ...
View Jeff Dimery's business profile as Chief Executive Officer at Alinta Energy and see work history, affiliations and more.
Alinta Energy CEO Jeff Dimery talks to Simon Royal of 7.30 SA about the planned carbon tax and what the future may hold.
Jeff Dimery (CEO) Products: Natural gas and electricity: Number of employees. 700: Website: www.AlintaEnergy.com.au: Alinta Energy is an ...
View Jeff Dimery’s professional profile on LinkedIn. LinkedIn is the world's largest business network, ... CEO at Alinta Energy. John Huggart.
Switch to Alinta Energy as your Electricity & Gas Supplier. We cover Victoria, Western Australia and South Australia making energy more affordable.
As Alinta Energy and its bankers plot a $5 billion-odd listing, they must decide what to do with the company's $400 million trump card.