UK B2B Energy Retail 2004 Review

Content

• Chapter 1 Executive Summary
  • In MEU retail, GDF made a splash and price rises put pressure on all round
  • In SME retail, SSE and EDF Energy moved forward while the nature of the market started to change
  • The wholesale market surged upwards, and more people started to worry about security of supply
  • The regulatory scene was a combination of UK and environmental EU initiatives
• Chapter 2 Introduction
• Chapter 3 Corporate Movers
  • A flurry of activity bolstered all parts of SSE's business without denting its reputation for judicious acquisitions
  • Scottish Power surged ahead with Six Sigma
  • EDF Energy increased its focus on the core business, and drove further synergies
  • NGT LDZ sales reignited the network assets market - all parties claimed to have benefited, not everyone believed them
  • GDF surged into the power market
  • Centrica invested in upstream assets and exited road services, but continued its multi utility strategy
  • Powergen I&C became E.ON Energy UK, and Powergen residential became a home services provider
  • RWE rebranded its UK business, but finished the year at a crossroads
  • The British Energy restructuring kept a customer champion alive; but the terms will affect the position of the direct supply business
  • BP exited the retail market and will not be replaced
• Chapter 4 Major Energy Users Retail Landscape
  • GDF burst into the Major Energy User power market; and gas market activity revolved around BP's exit
  • Dalkia and London Energy pushed energy services through the Performance Partnerships marketing initiative
  • Brand rose up the agenda as MEUs started to place a premium on service and multi-country contracts came a step closer
  • Brokers have never been more influential, but are under pressure
  • Key Account Managers bore the brunt of customer dissatisfaction with rising prices
• Chapter 5 Sme Retail Landscape
  • SSE was the principal mover in the SME power market and, like EDF Energy, moved into gas as well
  • Renewing rather than switching became the key feature of the SME market
  • The structure of many UK suppliers enabled larger SMEs to get a better price by taking a mass-market type product
• Chapter 6 Market Fundamentals
  • Wholesale energy prices rallied, particularly around the October contract round
  • The Renewables Obligation became more stringent and all but one utility were net buyers
  • Declining indigenous gas production increased import dependency
  • The UK moved closer to becoming an LNG importer again
• Chapter 7 Regulation
  • Despite obstacles, BETTA remains on track for April 2005
  • Energywatch continued its crusade and raised the volume of its voice
  • LCPD preparations continued, with plant owners adopting a wide range of strategies, though uncertainty over the NAP remains
  • EU ETS and the UK's CO2 targets are set to spur a new 'dash for gas'
  • The distribution price control review aimed for significant investment, although the rate of return offered did not meet DNO expectations
  • Ofgem reviewed wholesale gas price spikes but many believe that market imperfections remain
• Chapter 8 Appendix
  • Research methodology
  • Future readings
  • SPP writing team
  • How to contact experts in your industry
• List Of Figures
  • Figure 1: Scottish Power MEU Customer Satisfaction 2004
  • Figure 2: 2003 end of year results delivered 73m synergy savings
  • Figure 3: I&C power volumes of selected suppliers
  • Figure 4: BE pre-restructuring business model
  • Figure 5: Power: gains and losses (Nov 03 to Nov 04)
  • Figure 6: Gas: gains and losses (Nov 03 to Nov 04)
  • Figure 7: Estimated target metrics for the PP trial period to year end 2005
  • Figure 8: Importance of price in MEU supplier selection
  • Figure 9: Percentage of business (in value terms) placed by 3rd party intermediaries
  • Figure 10: Intended future use of 3rd parties relative to 2004
  • Figure 11: MEU Customer Satisfaction - Key Account Managers
  • Figure 12: Total SME sites (gas and power) (Nov 03 to Nov 04)
  • Figure 13: Last event action of SME customers, 2004
  • Figure 14: SME strategy was adapted for mass-market and major business customers
  • Figure 15: UK carbon production to 2010
  • Figure 16: DNO price review - initial adjustments