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Good times for GGD now before disruptive technology begins to bite-I: Third party entry to be difficult
Dec 26:   There are golden times for City Gas Distribution companies
8Those with an existing infrastructure have the most to gain as they can source cheap domestic gas at up to 110% of their total requirement without a necessary cap on end product pricing
8What is more, a well entrenched distribution base and other barriers will make it extremely difficult for third parties who want to exploit the common carrier concept to enter the market amd set up base.
8Existing players therefore enjoy a massive competitive edge.
8These companies take deposits in advance for customers for laying pipeline infrastructure and due to customer stickiness this amount remains with the company and add to additional cash generation.
8But disruptive technology, such as the advent of the electric car and falling cost of battery storage, may still make the CGD business model redundant in the long run
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