11. Conclusions on the Market Impacts of the Split
- There will be downward pressure on prices with wholesale price reductions of over 10% over the next few years.
- Wholesale price variability will be greater, due to prices being more responsive to supply and demand.
- It is possible that there could be intense competitive behaviour in the short term which might impact on the environment but this impact must be contrasted with the current risks of extra thermal generation and hydro spill.
- No significant adverse impacts on short term security of supply are expected and better price signals will assist future supply risk management by market participants.
- Greater customer choice, through retail competition, will create stronger incentives for generators and retailers to provide better service to customers.
- Better investment decisions are expected as a result of more efficient price signals over time.
- Operational and investment decision making will be subject to a greater degree of external pressures, thereby increasing the quality of decisions.
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