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Liberalization encourages better consumer segmentation

18 May 2018
Electricity
Gabriel Avăcăriței

Generally, titles are short and therefore miss out on complex ideas. In the new style of zf.ro, this article might have been called: “Liberalization and new technologies encourage better segmentation of consumers according to their needs and their readiness to pay for more comfort.”

The conversation proposed by the Association of Electricity Suppliers in Romania – AFEER and energynomics.ro on “The place and role of consumers in the energy market” had eight speeches delivered by speakers with different professional backgrounds and they were tested by a qualified and demanding audience. We have found out from many perspectives and with strong arguments that the role of the consumers is no longer limited to consuming, and that the price is not the only element of interest to them. In fact, it has begun quite evident that the term ‚consumer’ is too generic, as it designates and thus conceals so many desires and needs on the basis of which suppliers can now segment their clientele in order to offer to everybody what they want.

“An informed consumer is a shielded consumer,” said AFEER President Ion Lungu. This idea was also assumed by the representative of the National Regulatory Authority for Energy – ANRE, Claudiu Dumbrăveanu, who recommended to the household customers to contact the suppliers and to check the data from the price comparator in the Authority’s website before signing a contract with another electricity company: “After studies the offers on the platform, each consumer should contact the supplier”. The Director-General of the Energy Market and Pricing Directorate also presented the components of the final invoice paid by household customers. On an average at national level, 45.2% of the invoice is the net cost for power purchasing, 29.8% is the distribution tariff, 5.9% is the transmission tariff, 8.1% is the supply cost, 8.6% green certificates, 2.2% – contribution for cogeneration and 0.1% – excise duty.

For many Romanians it is still too much an effort to understand the details of the way the energy system is organized and functioning, warned Mihai Mereuta, the president of the League of Owners’ Associations Habitat. “People are in need of energy specialists and they are scared by sales representatives. A specialist who has the patience to explain the difference between transport, distribution and supply, for example, will be more successful than most before consumers who do not know such differences”, said Mihai Mereuta.

“For a long time, price was the main concern for most. What is happening in the market shows that at present, price is not the only thing that matters anymore, but a particular emphasis is placed on the quality of services, the associated services, and generally on the quality of consumer and supplier collaboration”, said Ion Lungu.

Between these two extremes, millions of consumers know and understand the energy market differently, have different goals and different financial possibilities. Cornelia Szabo, Chief Executive Officer of CEZ Vânzare, presented eight categories of needs identified among customers and the company’s response to these:

  • Counseling – materialized in pre-contractual assistance
  • Invoice savings – by recommending the needed product
  • Safety – through the service for finding and repairing weak spots in installations
  • Comfort – through dedicated consultant, permanent communication channels, complete supplier
  • Stability – through focus on business, tradition, own energy sources, specialists
  • Consumption reduction – through energy audit
  • Long term partnership
  • Simplicity – electronic invoice, online payment, online account

“Self-reading service has developed very well,” said Cornelia Szabo. “Two years ago, about 0.5% of customers used this service, and now the share is 3%.” The share of those who use direct debit or electronic invoice (8%) grew, but “there is still a representative segment of people, at least in Oltenia, who wants direct contact with the operator from a customer relations center”, said the official from CEZ Vânzare. Cornelia Szabo announced that investments in new technologies for improving the supplier-customer interaction will continue, and the virtual space for each client will be upgraded as early as this Summer.

Download the presentations of the speakers

Claudiu Dumbrăveanu, general director ANRE
Cornelia Szabo, CEO CEZ Vânzare
Radu Bătrânu, marketing manager Candy Hoover Romania
Mihai Dârzan, general manager Ringhel
Bogdan Brad, project manager POWA
Alexandru Teodorescu, CEO Renovatio

Autor: Gabriel Avăcăriței

A journalist experienced with both old and new media, Gabriel has been the editor in chief of Energynomics since 2013. His great command in communication, organizing information and publishing are put to work every working day in order to develop all the projects of the Energynomics B2B communication platform: website, magazine, and own-events.

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