Market Competitive Intensity (MCI): Luxembourg

Content

• Datamonitor View
• Catalyst
• Summary
• Analysis
  • Introduction: Datamonitor's Mci Index Offers A Robust Framework for Measuring The Development of Energy Market Competitive Intensity
  • The Mci Index Shows How Attractive A Particular Market Is to New Entrants in Terms of The Competitive Environment
  • The Mci Assessment Draws on Nine Underlying Metrics Grouped into Three Broad Clusters: Market Framework; Supplier Push; Customer Pull
  • The Mci Index Measures Competitive Intensity in The Eu 27 and 6 Related Markets
  • The Mci Index Assesses Markets as They Stood in Early 2008 and Forecasts Conditions Likely to Be Prevailing Three Years after Full Market Opening
  • Each of The Nine Pillars Has An Assessment Scale to Allow for The Comparison of Diverse Markets (See Appendix for More Details)
  • Two Differing Overall Mci Scores Are Calculated to Ensure Full Clarity of Results
  • A Simple Weighted Average (Additive) Measure Shows Overall Competitive Intensity
  • A Weighted Multiple (Multiplicative) Measure Shows Overall Competitive Intensity
  • The Mci Framework Has A Number of Applications for Your Organization
  • Context: Luxembourg Has Been Slow to Embrace Liberalisation and Competition in Its Gas and Electricity Sectors
  • Luxembourg Remains A Limited Market for Energy Investment Due to Market Size, Regulatory and Incumbent Barriers
  • The Gas Market Is Dominated by Two Key Suppliers with The Regulatory Framework Making Market Entry Difficult to Achieve
  • Power Mci: Scope for New Entrants to Luxembourg's Power Market Remains Inherently Limited
  • The Market Framework Metrics Remain An Inherent Flaw in Luxembourg's Overall Score
  • Effectiveness of Regulator [2008: 2/10 2010: 2.5/10]
  • Ease of Third Party Access [2008: 3/10 2010: 3.5/10]
  • Effectiveness of Balancing and Data Transfer [2008: 1.5/10 2010: 2/10]
  • Balancing Is Largely Predicated on Neighboring Countries and Their Networks. with Respect to Electricity, The Network of Cegedel-Net Is Connected to The Network of Rwe in Germany, and Sotel's Network Is Connected to Elia in Belgium, and The Imbalance Is Integrated in These Respective Networks
  • The Dominance A Number of Key Utilities Curtails The Supplier Push Scores
  • Wholesale Market Fragmentation [2008: 2/10 2010: 3/10]
  • Retail Market Fragmentation [2008: 0.5/10 2010: 1/10]
  • Traded Market Maturity [2008: 2.5/10 2010: 3/10]
  • Customer Pull Metrics Only Play A Minor Role in The Current Market Structure
  • Access to Market Information and Assistance [2008: 1/10 2010: 1.5/10]
  • Consumer Representation [2008: 1/10 2010: 2/10]
  • Propensity to Switch [2008: 0/10 2010: 0/10]
  • Switching Has Not Been A Prominent Aspect of The Luxembourg Market; A Limited Amount of Industrial Switching Has Taken Place, but This Has Not Been Experienced in The Household Sector to Any Great Degree
  • Gas Mci: Very Limited Viabaility Currently Exists for New Players in The Luxembourg Gas Market
  • Effectiveness of Regulator [2008: 1.5/10 2010: 2/10]
  • Ease of Third Party Access [2008: 2/10 2010: 2.5/10]
  • Effectiveness of Balancing and Data Transfer [2008: 3/10 2010: 4/10]
  • Supplier Push Metrics Are All at The Bottom End of The Scale in The Current Climate
  • Wholesale Market Fragmentation [2008: 1/10 2010: 1.5/10]
  • Retail Market Fragmentation [2008: 0/10 2010: 1.0/10]
  • The Retail Gas Market in Luxembourg Remains Very Concentrated amongst A Small Number of Players
  • Traded Market Maturity [2008: 1/10 2010: 1.5/10]
  • Customer Pull Metrics Largely Remain at The Lower Range of The Scale
  • Access to Market Information and Assistance [2008: 1/10 2010: 2/10]
  • as in The Electricity Sector, Market Information and Assistance in The Gas Sector Remains Limited in Luxembourg
  • Consumer Representation [2008: 1/10 2010: 2/10]
  • Propensity to Switch [2008: 1/10 2010: 2/10]
  • Switching Rates Will Remain Low in Luxembourg over The Forecast Period. This Is Due to A Lack of Awareness on Behalf of Business and Consumers on The One Hand, but More Fundamentally, The Overarching Problem of A Lack of Market Choice Given The Dominance of Key Suppliers
  • Mci Scores
• Appendix
  • Definitions
  • Ask The Analyst
• List of Tables
  • Table 1: Market Competitive Intensity, Luxembourg 2008-10
  • Table 2: Mci Additive, Europe 2008-2010
  • Table 3: Mci Multiplicative, Europe 2008-2010
• List of Figures
  • Figure 1: Mci Assessment Scale
  • Figure 2: Mci Assessment Framework
  • Figure 3: Mci Market Coverage
  • Figure 4: Mci Scales
  • Figure 5: Mci Applications
  • Figure 6: European Power Market Competitive Intensity, 2008-10
  • Figure 7: European Gas Market Competitive Intensity, 2008-10
  • Figure 8: Power Market Competitive Intensity, Luxembourg
  • Figure 9: Gas Market Competitive Intensity, Luxembourg
  • Figure 10: Scale for Mci Assessment, Effectiveness of Regulator
  • Figure 11: Scale for Mci Assessment, Ease of Third Party Access
  • Figure 12: Scale for Mci Assessment, Effectiveness of Balancing and Data Transfer
  • Figure 13: Scale for Mci Assessment, Wholesale Market Fragmentation
  • Figure 14: Scale for Mci Assessment, Retail Market Fragmentation
  • Figure 15: Scale for Mci Assessment, Traded Market Maturity
  • Figure 16: Scale for Mci Assessment, Access to Market Information and Assistance
  • Figure 17: Scale for Mci Assessment, Consumer Representation
  • Figure 18: Scale for Mci Assessment, Propensity to Switch