Competitive utilities markets

Effective utilities market infrastructures

Britain benefits from operating one of the world’s most liberalised unbundled and consistently competitive energy markets.  This has helped consumers enjoy more affordable, reliable energy supply. And competition is coming to the British water market for non-household customers in 2017.

Where, like utilities, markets rely on physical infrastructure being shared, effective competition does not happen by itself. The organisations using the infrastructure will change throughout its life. Additionally, it may be used concurrently by different organisations for different purposes: traditional energy supply; operation of the energy networks in smarter ways; and the provision of low-carbon energy services.  Where this level of complexity exists, markets need help to operate effectively.

The guiding principle for any infrastructure should be that it only handles activities common to all market participants. Additionally, it should not be responsible for activities where market participants can either differentiate themselves or create cost leadership. When fundamental principles are applied, value is maximised and the barriers to competition minimised. This makes it easier to get innovative new products and services to market, thereby enhancing consumer choice.

An effective market infrastructure reduces the difficulty of operating in a market that requires organisations to manage the complex commercial relationships. In doing so, it removes much of the cost in managing those processes.

CGI has an unparalleled track record of designing, implementing and operating the market systems that enable competitive utility markets to operate effectively.  We leverage our deep understanding of market regulation, information management and security, as well as expertise in other markets to partner clients in developing an appropriate, easily manageable, solution

Experience and expertise

  • Designed, built and operate 12 of the 18 utilities market systems in the world today
  • Implementation of market systems for central market operators in the Australia, Belgium, Czech Republic, Denmark, Iceland, the Netherlands, the U.S. as well as the U.K.
  • We designed, built and continue to operate, on behalf of ELEXON, the systems that have settled more than £150 billion wholesale electricity trades since the electricity trading arrangements were transformed in 2001
  • We are appointed as Data Services Provider to the DCC to enable secure access to 53 million smart gas and electricity meters in Britain
  • We have designed, built and operate the Market Operator Services Ltd (MOSL) central market system to support the operation of the non-household English water market. 

Our experience is not limited to enabling energy markets. We’re experts in central market systems of all kinds – for example, we created SWIFT for banks that needed a cross-border funds transfer system.