The consultant’s report points out that future bidding prices could increase “if the generators incorporate an associated risk premium into the prices offered”.

Systep warns of negative effects on the market due to migration of regulated customers

The migration of regulated customers to free customers could have a negative impact on the electricity market, according to the consulting firm Systep in its March monthly report, which could result in higher energy prices in future bidding processes for regulated customers.

“The migration of customers out of tendered contracts, as a result of the incorporation of a marketer, could have a negative effect on the market, even increasing the prices of future tenders if generators incorporate an associated risk premium into the prices offered,” the analysis states.

According to the document, in this context, “if progress is made in the separation of the marketer, mechanisms must be established to separate the effects of short-term and long-term marketing schemes”.

[SEE ALSO: Distributors’ energy sales fall 7.3% in 2017 dragged down by customer transfers].

“The marketer could manage long-term contracts, offering rebates on tariffs by reducing administration costs. It could also offer new services, especially those where location is relevant,” it adds.

Another relevant aspect mentioned in the Systep report is that, if commercialization is separated from the network business, it would be necessary to examine “to what extent the owner of the networks will be able to participate in the business developed in their facilities”.

The report points out that these points should be considered in the reform of the electricity distribution segment, since “it requires agreements and consensus to converge in a long-term view and a forward-looking design that will allow the efficient development of distribution systems in the coming decades”.