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Need 1 = Value Rivalry.
Description
2. Making a Vibrant Retail Market. The edge issue is cost competitiondrives suppliers into the business sector drives clients to go shoppingTwo major questions:what cost does non-picking client seecan default supplier apply market power. 3. Pennsylvania Price to Compare Many suppliers offer private decisions.
Transcripts
Slide 1
Need 1 = Price Competition Retail cost to look at in PA accommodates genuine rivalry. Discount cost to analyze in CA implies couple of switchers.
Slide 2Creating a Vibrant Retail Market The limit issue is value rivalry drives providers into the market drives clients to go shopping Two major inquiries: what cost does non-picking client see can default provider apply advertise control
Slide 3Pennsylvania Price to Compare Many providers offer private decisions
Slide 4Price Competition & Public Policy Each of these strategy choices influences the others and the potential for retail value rivalry. Default Service STRUCTURE & PRICE (POLR) Stranded Cost Recovery (CTC) Price to Beat (Shopping Credit/Back-out Rate) PRICE COMPETITION Rate Cut/Rate Freeze
Slide 5Wholesale v. Retail Supply Costs * Savings in light of a 800 kWh/month use with a 8cents/kWh default benefit rate, sparing 4% on discount and 12% on retail costs.
Slide 6Market Power Mitigation Matters A Default Supplier serves all non-picking clients at a lower cost than contenders no showcasing costs no exchanging costs moment economies of scale - retail and discount Retail advertise power can be applied 2 ways control costs - either high or low avoid passage of aggressive providers
Slide 7Default Service Provider Spectrum Atlanta Gas: Default benefit shared by all advertisers Maine: Full focused offering before market opening More Competitive Pennsylvania: Partial focused offer secondary selling opening Texas: Regulated, utility associate default benefit California: Regulated, utility default benefit
Slide 8Default Service Pricing Spectrum No default benefit: retail advertise cost - AGL Market offer discount + managerial retail viper More Competitive Administratively set retail value, fuel balanced - TX Administratively set retail cost - MA Market listed discount cost - CA
