The essence of competition in the electrical power subsector

The aim and essence of competition is to achieve a possibly large increase in sales revenues for the supply side, as well as benefits associated with the purchase of goods and services for the demand side. As participants in a competitive market, businesses by their behaviors and actions wish to acquire production resources, the best possible competences among labor and management staff, as well as new outlet markets. This contributes to strengthening their competitive position. Competition in this case is intended to maximize their sales revenues and, from the perspective of the buyer, maximize the benefits from purchased goods or services. Competition, therefore, determines the relation which takes place between market participants. In the electrical power subsector these relations depend on the economic area in which a business operates – they will be different for electricity generating businesses and the wholesale energy trade market, different for the field of distribution, and completely different for retail sales of electrical power to end users.