Table of Contents
OVERVIEW
Catalyst
Summary
EXECUTIVE SUMMARY
Market analysis
Constraints and challenges
Future outlook
DRIVERS OF PRODUCT AND SERVICE DIVERSIFICATION
Market liberalization and increasing competition drive proposition diversification
Suppliers should offer products that are relevant to the conditions in each market
Rising churn rates drive the need for customer retention strategies
Increased switching rates in the UK have made fixed term products more preferable
Competition unleashed: the complete liberalization of the Irish retail market has created a preference for flexible products
The shift from a cost-based to a service-based business model
Suppliers are increasingly offering more customer-friendly services and facilities
DIFFERENTIAL APPROACHES FROM LOCAL AND INTERNATIONAL PLAYERS
Energy retail players across Europe have different strategies for particular markets
International retailers have the edge with competitive pricing, a wider portfolio, and strong branding
Local retailers tend to promote fixed products with focused service options but lack organic growth
ENERGY RETAIL MARKET POSITIONING AND KEY STRATEGIC DIFFERENTIATORS
The big five
E.ON is the leader in product innovation
Rich product content and tariff innovation
High rate of payment flexibility
Focused energy efficiency measures
Specialized and focused sales and marketing strategies across geographies
EDF's market presence is unrivalled
Technological expertise in storage heating and energy backup
Unparalleled service delivery and timeliness
RWE has state-of-the-art portfolio management and sales activities
Strong regional orientation with high quality markets
Customer satisfaction is a top priority
Providing tailor-made energy solutions to SMEs
Energy efficiency
Cost leadership due to varied energy sources
GDF Suez enjoys a traditional market in France and Belgium
Focus on natural gas production resulting in cost leadership
A good level of penetration in the SME services sector
Enel is expanding its market presence
Innovative online plans with profitable time slots
Promotional offers and a points redemption system tap into consumer loyalty behavior
Strong expertise in technology-oriented niche services and focused customer services
Lacks penetration in household heating and other services
Key contenders to the top five retail players in Europe
ENERGY RETAILING TRENDS AND STRATEGIES
Propositions and tariff innovations
Differential rates with respect to the time of day/season
Green tariff plans promote renewable energy
Pricing categories depending on the rate of energy consumption
Bonus points and discounts
Bundled offers providing security
Energy retailers are providing additional energy services such as the installation and maintenance of heating devices
Energy efficiency services are becoming an increasingly important offering
Non-energy services complement the service profile of energy suppliers
Loyalty programs and good customer service facilitate customer retention
Feed-in tariffs are gaining popularity in the energy services sector
APPENDIX
Glossary and definitions
Review of European major retailers' products and services portfolios
Core products: residential customers
Core services and energy efficiency services: residential customers
Extended services and other home services: residential customers
Core products: SME customers
Core services and energy efficiency services: SME customers
Extended services and other services: SME customers
Further reading
Ask the analyst
Disclaimer
List of Tables
Table: Time differential product pricing
Table: Environmentally friendly products
Table: Consumption-dependent tariff system
Table: Innovative discount schemes
Table: Bundled product offering
List of Figures
Figure: Europe: retail market position, 2009
Figure: Impact of fixed/capped propositions on churn rates in the UK
Figure: Europe: energy retail market share of the major players in the EU (excluding small/local players), 2009
Figure: Europe: proposition strength of the major utilities, 2010
Figure: Europe: assessment of the top five energy retail companies, 2010
Figure: Europe: market positioning of major energy retail companies, 2009
Figure: Product, promotion, positioning, and pricing assessment of European propositions in the energy retail market
Figure: European core products portfolio for residential customers
Figure: European core services and energy efficiency portfolio for residential customers
Figure: European extended services and other home services portfolio for residential customers
Figure: European core products portfolio for SME customers
Figure: European core services and energy efficiency portfolio for SME customers
Figure: European extended services and other services portfolio for SME customers