Market Competitive Intensity (Mci): Brunei

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 the development of 20 diverse Asia Pacific gas and power markets
  • The MCI Index assesses markets in December 2007, and on July 1, 2010, in addition to driving a market switching forecast
  • 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: Brunei's energy markets lack competitive intensity throughout the forecast period
  • Brunei's power market score is constrained by weak customer pull scores
  • Brunei's gas market scores are weak across all of the metrics
  • Power MCI: Brunei's power market shows only very marginal development
  • Other than the balancing score, Brunei's Market Framework scores are weak
  • Effectiveness of regulator [2007: 1/10 2010: 1/10]
  • Effectiveness of balancing and data transfer [2007: 4/10 2010: 5/10]
  • Brunei is characterized by a duopoly type structure where the government body is the main supplier at both wholesale and retail level
  • Wholesale market fragmentation [2007: 3/10 2010: 4/10]
  • Retail market fragmentation [2007: 3/10 2010: 4/10]
  • Traded market maturity [2007: 0/10 2010: 0/10]
  • Customer pull scores are all at the bottom end of the scale
  • Access to market information and assistance [2007: 2/10 2010: 2/10]
  • The dominant role of the DES and BPC in the retail power sector mean that this metric scores very much at the bottom end of the scale
  • Consumer representation [2007: 0/10 2010: 0/10]
  • Propensity to switch [2007: 0/10 2010: 0/10]
  • Gas MCI: Brunei's gas market remains at the lower end of the competitive intensity scale
  • The Market Framework scores will remain modest over the coming years
  • Effectiveness of regulator [2007: 2/10 2010: 3/10]
  • Ease of third party access [2007: 0/10 2010: 0/10]
  • Brunei LNG (BLNG) is the only company engaged in the midstream value chain of the gas industry. BLNG has its own LNG terminal and transmission network, and no other company exists in the segment. as a result of this configuration there is no need for third party access as the market is dominated by a single player
  • Effectiveness of balancing and data transfer [2007: 0/10 2010: 0/10]
  • The current gas market structure in Brunei means that balancing is yet to emerge as a concept
  • A highly concentrated wholesale and retail market leads to weak Supplier Push scores
  • Wholesale market fragmentation [2007: 1/10 2010: 1/10]
  • Retail market fragmentation [2007: 0.5/10 2010: 0.5/10]
  • No customer pull exists in the Brunei gas market
  • Access to market information and assistance [2007: 1/10 2010: 2/10]
  • Consumer representation [2007: 0/10 2010: 0/10]
  • Propensity to switch [2007: 0/10 2010: 0/10]
  • Outlook: Competitive intensity will remain limited for the foreseeable future
  • MCI Scores
• Appendix
  • Definitions
  • Ask the analyst
• List of Tables
  • Table 1: Market Competitive Intensity, Brunei 2007-10
  • Table 2: MCI additive, Asia Pacific 2007-2010
  • Table 3: MCI multiplicative, Asia Pacific 2007-2010
• 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: Asia Pacific power Market Competitive Intensity, 2007-10
  • Figure 7: Asia-Pacific gas Market Competitive Intensity, 2007-10
  • Figure 8: Power Market Competitive Intensity Index, Brunei
  • Figure 9: Gas Market Competitive Intensity, Brunei
  • Figure 10: Market Competitive Intensity, Brunei
  • Figure 11: Scale for MCI assessment, effectiveness of regulator
  • Figure 12: Scale for MCI assessment, ease of third party access
  • Figure 13: Scale for MCI assessment, effectiveness of balancing and data transfer
  • Figure 14: Scale for MCI assessment, wholesale market fragmentation
  • Figure 15: Scale for MCI assessment, retail market fragmentation
  • Figure 16: Scale for MCI assessment, traded market maturity
  • Figure 17: Scale for MCI assessment, access to market information and assistance
  • Figure 18: Scale for MCI assessment, consumer representation
  • Figure 19: Scale for MCI assessment, propensity to switch