Notice Re: Calculation of Market Shares

May 29, 2008


Re: Calculation of market shares 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’. 

Given the above, it is in the MSA’s view timely to revisit the subject of market concentration.  The MSA is intending to release a short report containing simple metrics related to wholesale market shares.  The report is intended to assist all stakeholders in developing an increased understanding of wholesale market concentration.  Given this purpose, the report will include only aggregate metrics and participants will not be named (referred to only as participant A,B,C etc).

In order to minimize the effort required to by participants the MSA has constructed an Excel spreadsheet to facilitate participants’ submissions and attached a sheet of definitions.  A hardcopy of both the spreadsheet and definitions are included in Appendix A.  Further, the MSA believes it will be able to construct meaningful metrics by requesting data from the six largest market participants.  Each of the participants that is required to provide information will be contacted directly by the MSA in the next few days.  Responses to this information request are due no later than June 13, 2008.

Yours truly,

“Original signed”

Mike Nozdryn-Plotnicki
Manager, Market Monitoring
Market Surveillance Administrator

Created: 5/29/2008