Competition in the Residential Electricity Market

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DublinTexas

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So after our liberated residential electricity market is there for years now with 2 companies actually allowing residential sales (ESB and Airtricity) in January a brand new company is going to sell electricity to residential customers.

Drum roll please… for …


Bord Gáis


Yes you read that right, the state owned and controlled Bord Gáis is going to sell us poor resident’s electricity now in competition to the other state owned and controlled ESB.


Wow so the state is now going to compete against the state with Airtricity struggling to compete at all despite their “clean” power.


And to avoid overpaying more people at Bord Gáis they outsourced the sales staff to Conduit .


This is amazing, we don’t have competition in the market and now we have 2 state businesses which all constantly shout that they don’t have enough money and do nothing to promote competition competing with each other.


What for a banana republic this is.
 
As a customer of Airtricity I can assure you that they are still there, even if they are a little bit more expensive than ESB (despite only using very minor amount of fossil fuel).

But the CO2 I don't cause every month is worth the about 1€ more I pay to them.

And as I just found out, Board Gais now has competition for residential gas supply from Flogas Natural Gas.

But still what for an open market, 2 state companies against 1 provider (who does not even use the same fossil fuel).
 
DublinTexas said:
So after our liberated residential electricity market is there for years now with 2 companies actually allowing residential sales (ESB and Airtricity) in January a brand new company is going to sell electricity to residential customers.

Drum roll please… for …


Bord Gáis


Yes you read that right, the state owned and controlled Bord Gáis is going to sell us poor resident’s electricity now in competition to the other state owned and controlled ESB.


Wow so the state is now going to compete against the state with Airtricity struggling to compete at all despite their “clean” power.


And to avoid overpaying more people at Bord Gáis they outsourced the sales staff to Conduit .


This is amazing, we don’t have competition in the market and now we have 2 state businesses which all constantly shout that they don’t have enough money and do nothing to promote competition competing with each other.


What for a banana republic this is.
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So what do you want to happen - Would you prefer that Bord Gais DON'T enter this market?
 
Complainer said:
So what do you want to happen - Would you prefer that Bord Gais DON'T enter this market?
Click to expand...

Yes.

Board Gais should concentrate on doing what they were set up to do, deliver gas at a resonable rate. Giving that they currently are making a mess out of it they should concentrate on their core business.

This is a move by the Irish Goverment to disguise that there is not competition in the market. Now they can say "we have 3 companies" while in reality there are only 2.

Having a company owned by the same organisation going after the customers of another company owned by the same organisation makes no sense, it's just generating cost that in the end leads to higher cost for both electricity and gas because somewhere they need to hide the cost that is coming out of luring people away from each other.
 
DublinTexas said:
Yes.

Board Gais should concentrate on doing what they were set up to do, deliver gas at a resonable rate. Giving that they currently are making a mess out of it they should concentrate on their core business.

This is a move by the Irish Goverment to disguise that there is not competition in the market. Now they can say "we have 3 companies" while in reality there are only 2.

Having a company owned by the same organisation going after the customers of another company owned by the same organisation makes no sense, it's just generating cost that in the end leads to higher cost for both electricity and gas because somewhere they need to hide the cost that is coming out of luring people away from each other.
Click to expand...

Agreed, and wait till we see how many millions both State entities spend on advertising in their attempts to 'compete' with each other!

This is the kind of nonsensical waste of resources in the public sector that annoys the general public.
 
DublinTexas said:
Board Gais should concentrate on doing what they were set up to do, deliver gas at a resonable rate. Giving that they currently are making a mess out of it they should concentrate on their core business.
Click to expand...
Perhaps you could clarify how Board gais are making a mess of their core business?

Sherman said:
Agreed, and wait till we see how many millions both State entities spend on advertising in their attempts to 'compete' with each other!.
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Wouldn't these same millions be spent ('wasted') by any new entrant to the market?
 
Their price alone is a good example how they are not able to deliver on their core business in a reliable way.

Giving that they have a virtual monopoly (and hence buy massive amounts on the wholesale market) in their area their prices are still at least 1.35% higher than their only competition (small) and if the winter saver price is used, they are actualy 12.84% higher. Sure this is based on my personal gas usuage but it clearly shows that competition can make a difference. They supply over 600,000 customers so they must have more synergies and buying power than a small company.

Than look at the mess they did when they all gave us new account numbers so that their billing system now can cope with billing electricity. Why do non electricity customers have to pay the cost for implementing a billing system that supports what they don't need to have.

They are now investing about 750 Million Euro into electricity related assets and that cost needs to come from somewhere as they won't be able to attract enough customers for their electricity right away. So these 750 Million will in some form or another be paid by their gas customers.

I suspect that in reality this is all a scope to position themselves for a better privatisation down the road in a couple of years and not to make gas delivery better.

But than gain you might disagree with me but I for one will change to flo gas as it's saving me a over 130€ a year.
 
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