Not enough jobs for the boys and girls in that scenario - and throw in a competition watchdog keen to upgrade its social media footprint and thus justify its existence?
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Trust Power at my door today offering deals Power,internet,phone last week phone call from Genesis offering $400 sign on.
if Genesis is offering a $400 sign up credit then you can be sure that a customer is worth far more than $400 to them. The transaction costs when acquiring 231,000 customers at once are far less per customer than marketing and staff costs of acquiring customers one by one. $1,000 per customer is $231m.
We can be sure with IFT’s involvement, TPW’s customers won’t be given away on the cheap.
Why does it have to be someone else in the electricity sector.
Couldn’t Spark for example buy them and then target those customers only putting one of their products. Trust power already offer power and phone but imagine the growth of Spark could convert an extra 50% of there clients onto a combined plan and consolidated invoice.
Or maybe IFT could buy off themselves and back it into Vodafone.
No, it doesn't have to be a business already in the sector, but any retailer without at least some of their own generation will get a hiding in the electricity market. If they under hedge then they will get hit heavily everytime the wholesale price spikes, and if they over hedge they will be paying too much for their energy and have to cut their margins. Because of our single time zone they can't even offset with bi-lateral deals in other time zones. So overall any retailer without a very flexible supply would really struggle.
https://www.stuff.co.nz/national/pol...climate-policy
" He also discussed the enormous demand this would place on our renewable electricity generation. Carr said that the power would come from existing and new sources.“[The emissions budget] assumes the near 13 per cent of electricity currently used by the aluminium smelter will become available for the use of all New Zealanders and between now and 2035 we increase by about 170 per cent the renewable generation capacity in New Zealand largely but not entirely from wind and some solar,” Carr said. "
Presumably positive for Meridian & Contact?
If TPW was no longer a retailer, would that clear the way for IFT (or even TPW itself) to buy distribution assets? I don't quite understand how the rules work, but Top Energy is both a distributor and generator now, so it seems to be possible.