EETT applies ex-ante margin squeeze tests of the retail offers of the Significant Market Power (SMP) provider in wholesale access markets. In this regard, EETT has adopted a margin squeeze model based on specified principles and methodology.
A positive margin between a wholesale and retail price ensures that alternative providers can compete in the relevant retail market.
EETT applies a model that examines whether an EEO (Equally Efficient Operator) is in a position to compete profitably in the retail with the SMP operator, using the wholesale services provided by the SMP operator and then issues a decision based on the results of the test applied.
