While the Future Fund's interest in acquiring Plus ES may seem advantageous, several concerns warrant careful consideration regarding the implications of such a transaction.
Potential for Reduced Competition
The consolidation of Plus ES under the Future Fund's ownership could lead to a reduction in competition within the smart metering sector. With Plus ES holding a 36% market share, its acquisition by a government-backed entity may diminish the competitive dynamics, potentially leading to higher prices and less innovation.
Impact on Consumer Choice
A decrease in competition might result in fewer choices for consumers regarding smart metering services. The Future Fund's control over Plus ES could limit the diversity of providers and limit options for different pricing and service plans.