HomeEvent NewsRetail Competition in the African Electricity Market

Retail Competition in the African Electricity Market

Identify the risks and opportunities in competitive electricity markets along generation, transmission and distribution with this pragmatic two-day course for power professionals.

Today’s electricity sector is expected to ensure an adequate supply of electricity at an affordable price. However, many countries continue to struggle and face political and economic challenges. Consequently, electricity markets in Africa are undergoing a far-reaching reform. In the short, medium and long term, the structures and dynamics are going to change significantly to promote more competition in the electricity market. In a free market, customers will be able to choose their retailer and benefit from a wider range of new products and more attractive prices. However, in many countries private sector participation continues to face constraints.

This two-day course will provide delegates with first-hand insights on defining the roles and identifying the risks and opportunities in competitive electricity markets along generation, transmission and distribution.  Delegates will understand how to strengthen their position in a transforming market and exploit new opportunities to stay competitive.

Attend this course to:

  • Review  Competitive Retail Market rules to better understand business separation guidelines to prepare your organisation for upcoming changes and challenges
  • Analyse the principles of retail competition to evaluate the impact on prices, products, services and reputation on your business and exploit new business opportunities
  • Investigate strategy options to develop a competitive position and align strategic goals and objectives with the structures of an open market
  • Gain insights into business models and options to improve your bottom line results and protect your revenue
  • Identify benchmarks and KPIs to simulate you costs to serve and forecast your retail operation margins
  • Discover the range of value added services to optimise the management of your customer segments and create a competitive advantage

Expert Course Facilitator – Mtutuzeli Benya


Mtutuzeli has over 32 years’ experience in economic regulation, regulatory research and analysis, accounting, finance, consulting, due diligence, forensic audits, project management, investment analysis for stock exchange listed companies and Greenfields projects. He started his career as Cost Analyst at Ford and, amongst others, worked for the Transkei Development Corporation as Divisional Accountant and Financial Controller. Mtutu then took over the role of the Financial Controller at an Independent Development Trust before joining Old Mutual as Investment Analyst. From 2002 on, Mtutu worked as Senior Financial Analyst and Senior Manager Regulatory Analysis Research for the National Energy Regulator of South Africa.

Course Agenda

Thursday 14 May – Course day 1

Topic: Introduction and overview

  • Business development
  • Commercial operations
  • Contract management (retail)
  • Wholesale and risk

Topic: Market reform approaches

  • Separation of DU and supplier roles
  • Creation of local suppliers
  • Opting in and opting out
  • Supplier of last resort

Topic: Market regulation

  • Overview of Transitory Rules and Supplemental Rules
  • Overview of Competitive Retail Market (CREM) Rules
    • Retail licences and Retail Electricity Suppliers
    • Rules for Contestability
    • Code of Conduct
    • Rate filing by supplier of last resort
    • Business separation guidelines
    • Distribution and Open Access Rules

Topic: Retail competition

  • Price
  • Products and innovation
  • Service and reputation
  • Assessment of issues and likely developments

Interactive workshop

Delegates will take part in an interactive simulation to investigate how competition can play out.

Open access

  • The objectives of open access
  • Key elements
  • Assessment of issues and likely developments
  • Retail operation margin


Interactive workshop

Delegates will take part in an interactive simulation to investigate how open access can play out.

Strategy formulation

  • Market structure
  • Competitive position
  • Market development
  • Strategy options
  • Choices
  • Strategic goals and objectives

Friday 15 May – Course day 2

Topic: Commercial operations

  • Business models and options
  • Scope and scale
  • Key functions:
    • Customer acquisition and retention
    • Credit check
    • Customer servicing
    • Energy trading
  • Design and limitations of retail platform
  • Business process redesign

Interactive workshop

Delegates will take part in an interactive simulation to investigate what can go wrong.

Topic: Competitive benchmarking

  • Gross and net margin definitions
  • Internal transfer price
  • Cost to serve
  • Switching and churn rates

Topic: Pricing and tariffs

  • Tariff designs
  • Price setting in competitive markets
  • Risk and other considerations

Topic: Customer management

  • Customer philosophy – how you see customers
  • Customer segmentation
  • Other considerations

Topic: Value added services

Core supplier value proposition

  • Sophisticated tariffs using interval metering and demand response
  • Integrating feed in tariffs
  • Demand side participation – sharing the cost savings
  • Multi-utility services – other products
  • Zero or low greenhouse gas emissions

Topic: Utilisation of new technologies

  • Strategic context
  • Retail platform development
  • Automation of basic retailing functions
  • New services – e.g. bill calculating and managing apps
  • Link to metering

Who Should attend:


Power industry professionals seeking to gain a strategic overview of the concepts and methodologies, alongside practical tips for improving their understanding of regulatory frameworks and their strategic planning including:


General managers, policy & regulation managers, heads of economic regulation, regulation analysts, programme managers, strategy planners, business advisors, commercial managers, project planners, portfolio managers, planning managers and policy experts.

The course will take place from 14-15 May 2015 in Cape Town. If you would like to register, please contact me on the details below:

Tarryn Philander

Spintelligent Training Academy

(t) +27 21 700 3555

(e) training@spintelligent.com