The Implications of BETTA for Energy Retail in Scotland

Introduction
When NETA was introduced into England and Wales, Scotland was left with an arrangement little changed from the 1990s. As there was no traded wholesale market, energy producers were required to sell their output to ScottishPower and Scottish and Southern Energy at a price set by the regulator. Thus the two Scottish based utilities controlled almost the entire generation output of Scotland.

Scope
An explanation of the background to BETTA and its key features.
An evaluation of contradictory arguments about the affect that BETTA will have on energy retail in Scotland.
Analysis of the residential pricing strategy of 10 suppliers in the residential market.
Prediction of the wins and losses for each major utility, in both the residential and I&C markets.
Highlights
The relative sizes of transmission and distribution charges may go some way to explaining the lack of residential switching in Scotland, but this is in no way conclusive. To date, Centrica has driven most of the residential switching in Scotland, indicating the importance of the ability to cross-sell

ScottishPower's residential market share is likely to fall to approximately 50%; SSE's pricing strategy and remote location will help it protect market share. Centrica will hold its Scottish residential market share steady; RWE npower will grow to approximately 6% of the market

Datamonitor expects the market share in Scotland's I&C sector to become more like the one in England and Wales. If the Scottish I&C sector becomes like England and Wales ScottishPower will lose market share dramatically, principally to EDF Energy, British Energy and RWE npower.

Reasons to Purchase
Understand what BETTA means to the retail department.
Gauge how much market share the Scottish incumbents are likely to lose.