In Poland it's quite a popular way of purchasing electricity and/or gas esp. among industrial end users and self-government bodies. Maybe there are countries that adopted special regulations on such a collective purchasing? Any experience with applying competition law?
Dear Mariusz, in South Africa electricity is sold on a sliding scale, the more power you buy in the same month the higher the tariff. This means it will be more expensive to buy
Dear Gerro, thanks for you answer but it seems that you haven't finished the last and I think most important sentence...
I have no experience with this type of issue, but your question sounds to me like purchasing in a bulk. One user will not buy much but many users (a group) will buy more and this is what seller wants - more buyers. What happens in between is an agreement on price unless another group of buyers is willing to buy at higher price. It is a free market at work. Note that free market is not perfect. Free market does not care about your local economy or welfare of young generation etc. It cares only about price agreed upon between two parties. Competition Law is to prevent extortion, black mails deals such as providing a benefit for the few only and for a short term/ immediate gain instead of many and long term gain. For example, in Poland , Polish government decided to build nuclear reactors few years ago, however, local people were protesting and even German government was advising not to pursue this avenue. Therefore government abandoned the pursuit. Few days ago, I read news that some government body representing 'energy' entity decides to pursue nuclear reactors (NC) constructions and gives 'approval' to go ahead. Now it wants public money and sponsors to do that. My question is what happened to a decision that people made few years ago. No longer valid? Do you call that democracy? A vote and decision with expiry date attached to it? Who really benefit from construction ot this (NC)? Do you really think that they can claim to be the representative of the group of people who live with NC next door and have their children playing nearby. I have a friend who worked 30 years ago on construction of NC in Canada and he was trained and educated that at that time that all technical and waste problems will be solved by now. But both of us do not see this. Free market is not always in the best interest for the group if it is unaware of consequences or ignorant or even worst - greed. In my opinion, competition law is short sighted.
Thanks for your reply. Establishment of such groups, buying together electricity and/or gas enhances their position vs. energy suppliers (at least in the opinion of buyers). There were examples of buying energy even 20% cheaper comparing to prices previously paid by participants buying alone. Your questions are of course interesting but they do not refer to the core of the problem I asked.
In the Industrial sector Action Plans for National Climate Change Policy for Pakistan, it is envisaged that: "As electricity supply/options improve in the country (Pakistan), the electricity providers may offer option of flexible energy mix in the consumption of energy to the industrial and corporate sector."
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