Protecting Municipal Revenues: Understanding Revenue Surplus Neutrality in Power Supply
James Beatty is Chief Executive Officer at Enpower Trading.
Summary
Enpower Trading explains how municipal revenues are protected through a construct called Revenue Surplus neutrality.
This construct ensures that the difference between the wholesale price of electricity and the retail price, which is the revenue for municipalities, remains constant.
James Beatty emphasises that this is important because a significant portion of municipal revenues comes from power supply.
James also mentions that their business model is based on this pricing construct to ensure municipalities continue to receive neutral revenues from power activities, regardless of whether there is a Wheeler or a Trader in their network.
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