Notice Re: Calculation of Market Shares

July 22, 2008

Notice to Market Participants

Re: Calculation of Market Shares of Offer Control of Major Participants

In November 2006 the MSA published a report entitled Market Concentration Metrics.  Market shares and market concentration in the wholesale market was subsequently the subject of significant discussion at the Section 6 committee.  Most recently the Alberta Department of Energy’s White Paper on Implementation of Policy Enhancements Supporting Section 6 included a ‘market share offer control test’. 

The MSA is releasing this short report Wholesale Market Shares of Offer Control containing simple metrics related to wholesale market shares of offer control.  The report is intended to assist all stakeholders in developing an increased understanding of wholesale market concentration.  Given this purpose, the report includes only aggregate metrics and participants are not named (referred to only as participant A,B,C etc).

The MSA will be pleased to hear from market participants with comments, including suggestions on alternate metrics or on the relative merits of simple vs. complex metrics and the associated requirements for data collection.  However, such commentary may be more appropriately directed to the discussions on the new White Paper that the Department of Energy announced at the June 27, 2008 EUA Advisory Committee meeting.

Yours truly,

“Original signed”

Mike Nozdryn-Plotnicki
Manager, Market Monitoring
Market Surveillance Administrator


 

Created: 7/22/2008