At a time when independent electricity suppliers, especially vertically integrated enterprises, are gearing up their efforts to gain household consumer market shares through heightened advertising campaigns, a mass shift already seems to be taking place in the medium-voltage group, comprised of high-consuming enterprises such as trading firms, retail chains, banks, shopping centers, and bakeries.
As party of Greece’s bailout agreement, main power utility PPC must surrender 25 percent of its market share in the immediate future, while no electricity suppliers will be permitted to hold more than a 50 percent share of the market by 2020.
According to market data, over 10 percent of medium-voltage consumers have already tranferred from PPC to independent suppliers.
Competition among suppliers vying to capture a share of the medium-voltage market is fierce as they seek firm market presences and consumers are on the lookout for the best possible deals. In certain cases, electricity suppliers are offering deals that barely cover costs, energypress has been informed.
The low-voltage household consumer category will soon emerge as the next battlefield for suppliers, market officials noted. Although profit margins here are narrower and service costs greater, a firm standing in this market promises to offer needed publicity to suppliers, until now sidelined by PPC’s dominance, and a sound customer base.
“There is no turning back now that alternative suppliers have, it seems, decided to overcome any hesitation and vye for a market share,” a sector official told energypress. “Even if the NOME-type auction plan for lower-cost energy does not produce results, an alternative way will need to be found to open up the retail electricity market. This can’t change,” the official added.
The NOME auction plan demanded by the country’s lenders, now being prepared, will offer wholesalers access to PPC’s low-cost lignite-fired electricity production.