Market Competitive Intensity (MCI): Lithuania

Datamonitor's Market Competitive Intensity Index (MCI) is a robust framework for measuring and benchmarking the development of competitiveness and market conditions in a range of gas and electricty markets. The MCI assessment draws on nine underlying metrics grouped into three broad clusters: Market framework; Supplier Push and Customer Pull.

Report Highlights
Datamonitor's MCI Index offers a robust framework for measuring the development of utility Market Competitive Intensity. MCI scores are calculated using two different methods. The first, the simple weighted average (additive) measure shows overall competitive intensity. The second, the multipliative 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.
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DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Introduction: Datamonitor's MCI Index offers a robust framework for measuring the development of energy Market Competitive Intensity 2
The MCI Index shows how attractive a particular market is to new entrants in terms of the competitive environment 2
The MCI assessment draws on nine underlying metrics grouped into three broad clusters: Market framework; Supplier Push; Customer Pull. 3
The MCI Index measures competitive intensity in the EU 27 and 6 related markets 4
The MCI Index assesses markets as they stood in early 2008 and forecasts conditions likely to be prevailing three years after full market opening 4
Each of the nine pillars has an assessment scale to allow for the comparison of diverse markets (see appendix for more details) 5
Two differing overall MCI scores are calculated to ensure full clarity of results 5
A simple weighted average (additive) measure shows overall competitive intensity 5
A weighted multiple (multiplicative) measure shows overall competitive intensity 5
The MCI framework has a number of applications for your organization 6
Context: Lithuania has been slow to embrace liberalisation with regulatory weakness and the existence of regulated tariffs continuing to deter competitive development 7
Competition in Lithuania remains limited due to a number of remaining regulatory and tariff barriers 7
The gas market is dominated by two key suppliers with the regulatory framework and tariff barriers making market entry difficult to achieve 7
Power MCI: Scope for new entrants to the Lithuania power market remains inherently limited 9
The Market Framework metrics remain a key flaw in Lithuania's overall score 9
Effectiveness of Regulator [2008: 2.5/10 2010: 3.5/10] 9
Ease of Third Party Access [2008: 1.0/10 2010: 1.5/10] 10
Lithuania proved to be remarkably resilient in staving off efforts by the EU to encourage the legal unbundling of the electricity sector having applied to the EU for a postponement of the legal unbundling right up to the EU deadline of 1 July 2007. 10
Effectiveness of Balancing and Data Transfer [2008: 1.5/10 2010: 1.5/10] 10
The dominance a number of key utilities curtails the Supplier Push scores 10
Wholesale Market Fragmentation [2008: 2.0/10 2010: 2.5/10] 10
Retail Market Fragmentation [2008: 0/10 2010: 0.5/10] 11
Traded Market Maturity [2008: 1.0/10 2010: 1.5/10] 11
Customer Pull metrics play only a minor role in the current market structure 11
Access to Market Information and Assistance [2008: 1.0/10 2010: 1.5/10] 11
Consumer Representation [2008: 1.0/10 2010: 2.0/10] 11
Propensity to Switch [2008: 0/10 2010: 0.5/10] 11
Gas MCI: Very limited viabaility currently exists for new players in the Lithuanian gas market 12
Effectiveness of Regulator [2008: 2.5/10 2010: 3.0/10] 12
Ease of Third Party Access [2008: 2.0/10 2010: 2.5/10] 13
Effectiveness of Balancing and Data Transfer [2008: 3/10 2010: 4/10] 13
Supplier Push metrics are all at the bottom end of the scale in the current climate. 13
Wholesale Market Fragmentation [2008: 1.0/10 2010: 1.5/10] 13
Retail Market Fragmentation [2008: 0/10 2010: 1/10] 13
Traded Market Maturity [2008: 0/10 2010: 0/10] 13
Customer Pull metrics largely remain at the lower range of the scale 14
Access to Market Information and Assistance [2008: 0.5/10 2010: 1.0/10] 14
Consumer Representation [2008: 1/10 2010: 2/10] 14
Propensity to Switch [2008: 0.0/10 2010: 0.5/10] 14
MCI Scores 15
APPENDIX 18
Definitions 18
Ask the analyst 23
[Inhaltsverzeichnis ausblenden]

Table 1: Market Competitive Intensity, Lithuania 2008-10 15
Table 2: MCI Additive, Europe 2008-2010 16
Table 3: MCI Multiplicative, Europe 2008-2010 17
Figure 1: MCI Assessment Scale 2
Figure 2: MCI Assessment Framework 3
Figure 3: MCI Market Coverage 4
Figure 4: MCI Scales 5
Figure 5: MCI Applications 6
Figure 6: European Power Market Competitive Intensity, 2008-10 7
Figure 7: European Gas Market Competitive Intensity, 2008-10 8
Figure 8: Power Market Competitive Intensity, Lithuania 9
Figure 9: Gas Market Competitive Intensity, Lithuania 12
Figure 10: Scale for MCI Assessment, Effectiveness of Regulator 18
Figure 11: Scale for MCI Assessment, Ease of Third Party Access 19
Figure 12: Scale for MCI Assessment, Effectiveness of Balancing and Data Transfer 19
Figure 13: Scale for MCI Assessment, Wholesale Market Fragmentation 20
Figure 14: Scale for MCI Assessment, Retail Market Fragmentation 20
Figure 15: Scale for MCI Assessment, Traded Market Maturity 21
Figure 16: Scale for MCI Assessment, Access to Market Information and Assistance 21
Figure 17: Scale for MCI Assessment, Consumer Representation 22
Figure 18: Scale for MCI Assessment, Propensity to Switch 22
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