Croatia:RWE Energy electricity supplier aims entry on the gas supply market, market penetration case study

7. October 2013. / SEE Energy News

The company RWE Energy supplies 10,800 households in Croatia with electricity, as they said, and they requested to obtain a license for the supply of gas. RWE Energy has initiated the process of submission of the application for a license for the supply of gas, according to the company, adding that early next year a business decision will be made whether and when to enter in this segment of the service.

In mid-June, RWE Energy presented its offer to supply Croatian households with electricity, and then offered a lower price compared to the HEP; since HEP applies lower prices from today, RWE Energy is also in the implementation of new rates to continue to have lower prices compared to the HEP.

In early September, RWE Energy had about 3,000 users in the household category, the beginning of October that number increased to 10,800, and they expect further growth.

RWE Energy offers three contractual models to households – for one, two and three years, and people who sign contracts for a longer period earn higher discounts. They also offer an additional discount of two percent for the online application.

They point out from the company that people who sign a three year contract (Ideal) achieve the 12 percent discount on the cost of electricity compared the dominant supplier for the first year; for a two-year contract (Bonus) discount of 9 percent; for one year contract (Classic) a discount of 5 percent.

According to data from RWE Energy, their average customer uses about 4,500 kilowatt-hours (kWh) of electricity, which is slightly more than the average, and more than 90 percent of households have signed a contract for three years, which helps them to have the most favorable prices.

RWE Energy Calculations show that households that have contracts with the company, and who spend an average of 3,500 kWh per year, depending on the model of their choice, can have the annual savings of around HRK 200 to HRK 400.

RWE Energy has more than a thousand of eligible customers, and in early October they went out with a special offer for small businesses, as they can choose the best price.

The company repeated that their goal over the next three years is to take 10 percent of the Croatian market.

Source; Serbia Energy See desk

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