Why do switching statistics not align with changes in market share?

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  • Last post 27 February 2017
MartinT posted this 20 February 2017

There is usually a small difference between the total change in ICPs for a month, and the net gains from the switching statistics.  Can anyone explain why this is?

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msouness posted this 20 February 2017

Would it be due to ICP status (new ICPs not yet live) / and timing difference between MEP performing the installation and the retailer receiving the paperwork.

Matthew Keir posted this 27 February 2017

There are two reasons that changes in market share are not fully accounted for by switching in the same month.

(1) Market share reports the number of active connections held

Market share statistics show the number of active connections held by a retail entity at the end of the last day of each month (see the report notes). This measure is not concerned with the method by which active connections are acquired or lost; only what market share is held and how much has it changed. The switching process is used to acquire connections from competitors. As Malcolm has suggested, new connections (www.emi.ea.govt.nz/r/ypxh1) have a trader assigned during the ICP establishment process and also add to market share.

Growth in electricity connections, 2016

(2) Switching numbers are offset from market share reporting

Switching is reported based on the month that the switch is initiated. Recording switches by initiation date assists our monitoring activities by aligning switching with any catalysts for the switch – this may be a retailer’s promotion, or new a product entry, or our own ‘whats my number’ campaign.  While switching in the registry usually happens in a day or two, it can take up to 10 business days for a switch to complete. This means a switch that is initiated on 31 Jan, for example, won’t show in market share figures until February when it’s completed.

 

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