Assess the Competitive Environment of the Gas and Power Market of Japan in the Latest Market Competitive Intensity Report

Business Wire,  June 24, 2008  

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DUBLIN, Ireland -- Research and Markets http://www.researchandmarkets.com/research/7ef628/market_competitive has announced the addition of the "Market Competitive Intensity (MCI): Japan" report to their offering.

Datamonitor's MCI Index offers a robust framework for measuring the development of utility Market Competitive Intensity. The MCI assessment draws on nine underlying metrics grouped into three broad clusters: Market framework; Supplier Push; Customer Pull.

Scope:

* Insight into the current levels of competitiveness in the gas and power markets of 20 key Asia Pacific countries.

* Benchmarking of the factors driving competition and market entry in the gas and power sectors of the selected markets.

* Analysis of how the selected markets are likely to evolve given the currently prevailing market dynamics.

Highlights of this title:

* MCI scores are calculated using two different methods. The first, the simple weighted average (additive) measure shows overall competitive intensity. The second, the multiplicative method, is more complex. It prevents markets with an overly wide spread of underlying raw scores from exerting undue influence over, or skewing, the final result.

* Liberalisation, energy pricing issues and environmental concerns will remain key drivers of gas and power market dynamics throughout the MCI forecast period.

Key reasons to purchase this title:

* Assess the competitive environments of gas and power markets both now and in the future.

* Gain insight into value chain factors driving market competitiveness and how each individual part of the chain will evolve as competition develops.

* Screen future market entry plans against the MCI scores to highlight key areas of potential risk and opportunity.

Key Topics Covered:

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 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: Both the Japanese gas and power markets score towards the upper end of the competitive intensity scale

The Japanese power market loses one place in the rankings over the forecast period

The Japanese gas market declines in the rankings over the forecast period

Power MCI: the Japanese power market has strong Market Framework and Supplier Push metrics

All of Japans Market Framework factors score at the upper end of the scale

Effectiveness of regulator [2007: 7/10 2010: 8/10]

Ease of third party access [2007: 5/10 2010: 7/10]

Effectiveness of balancing and data transfer [2007: 6/10 2010: 8/10]

Supplier Push factors all score at the upper end of the scale

Wholesale market fragmentation [2007: 9/10 2010: 9/10]

Retail market fragmentation [2007: 9/10 2010: 9/10]

Traded market maturity [2007: 10/10 2010:10/10]

Weak Customer Pull metrics are unlikely to develop during the forecast period

Access to market information and assistance [2007: 2/10 2010: 2/10]

Consumer access to market information outside of the regulatory body remains very limited, with little improvement expected over the forecast period.

Consumer representation [2007: 0/10 2010: 2/10]

Propensity to switch [2007: 3/10 2010: 5/10]

Gas MCI: Weak Customer Pull metrics curtail the Japanese gas competitive intensity score

Regulatory effectiveness leads the Japanese Market Framework scores

Effectiveness of regulator [2007: 8/10 2010: 9/10]

Ease of third party access [2007: 5/10 2010: 7/10]

The Gas Utility Industry Laws were amended in June 2003 and came into effect in April 2004, with the purpose of expanding the large volume gas market and allowing Third Party Access. Under the third party access protocol, all companies owning or operating gas pipelines are required to allow TPA. All of these companies were also required to prepare and publish statements of their transportation terms, as well as notifying the authorities on new developments.

Effectiveness of balancing and data transfer [2007: 1/10 2010: 3/10]

The Japanese balancing regime remains rudimentary with significant scope for development.

Fragmentation in the wholesale and retail markets leads to a strong Supplier Push score