The Industry is Changing Fast, page-7

Its inevitable that in a declining market ( Power usage) that at some point the competitors will defend their business by price competition.
The game changer is that ERM have such a substantial lead in customer satisfaction especially accuracy of accounting. The reality is that ERM has now started selling into the SOHO / SME business and that's got a lot of better margin. The issue becomes interesting when the players have to decide to compete on price in the much larger margin areas. I think that ERM will continue to take customers and will keep moving deeper and deeper into the higher margin business and with technology will one day be able to supply retail as well. My smart meter can be read down my telephone and part of it is but they still send a meter reader just to check ...

So my gripe is largely with how , when and the way this hiccup was conveyed to us. Including the new MD's great spruik on the future and the plan... and getting his full incentive when in my opinion the company must have had insight to this competitive action when preparing the financial statements.

I am pleased that load is increasing and sales increasing and with oil where it is at least our sp is not at the 35% level but rather at the 70% level. Look at the 3 year charts for AGL and ORG - not a pretty sight.

I have increased my holding , I think $1.50 is a steal and the USA opportunity could be huge.