The retail electricity market
2. Customer segments and their respective weight
Typology of sites
86%
13%
1%
15%
32%
11%
42%
0,1%
Number of sites Electricity consumption
Large non residential sites Medium non residential sites Small non residential sites Residential sites
Sources: 2009, DSO, RTE, suppliers – Analysis: CRE The market consists of four segments:
• Large non residential sites: sites whose subscribed power level is at least 250 kW. These sites include large industrial sites, hospitals, hypermarkets, large buildings, etc. (with an annual consumption generally over 1 GWh).
• Medium-sized non residential sites: sites whose subscribed power level is between 36 kVA and 250 kW. These sites correspond to SME premises, for example (with an annual consumption generally between 0.15 GWh and 1 GWh).
• Small non residential sites: sites whose subscribed power level is below 36 kVA. These sites correspond to the professional mass market (private professionals, trades, etc.). Their annual consumption is generally under 0.15 GWh.
• Residential sites: Residential sites whose subscribed power level is below 36 kVA. Their annual consumption is generally under 10 MWh.
Electricity and gas market observatory Q1 2009
8 / 49 3. Status on March 31st 2009
A. Summary tables Synthesis in number of sites
Residential sites Non residential sites Situation
(number of sites) March 31st
2009
- All sites 29,700,000 29,700,000 4,800,000 4,800,000
- Sites with contract at market prices 884 000 699,000 775 000 796,0003
● TaRTAM sites - - 3520 3,370
● Sites gained by alternative suppliers 875 000 692,000 356 000 354,000 - Alternative suppliers’ market share
within all sites 2.9% 2.3% 7.4% 7.4%
Sources: DSO, RTE, Incumbent suppliers– Analysis: CRE
Synthesis in annualized consumption
Residential sites Non residential sites Situation
(annualized consumption) March 31st
2009 - Alternative suppliers’ market share
within all sites 2.9% 2.3 % 11.6% 11.6%
Sources: DSO, RTE, Incumbent suppliers– Analysis: CRE
Technical information: numbers of sites and annualized consumption are rounded, but alternative supplier’s market shares are calculated from real figures.
3 In the total number of non-residential sites at market price, the number of sites of EDF is that of November 2008 due to a malfunction of the information system of EDF.
Electricity and gas market observatory Q1 2009 9 / 49
B. Evolution of the number of sites with contract at market prices Number of sites with contract at market prices
-NON RESIDENTIAL sites-
Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09
Incumbent suppliers
Sources: DSO, RTE, Incumbent suppliers – Analysis: CRE NB: TaRTAM sites are included with sites at market prices
Number of sites with contract at market prices -RESIDENTIAL sites-
Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09
Incumbent suppliers
Sources: DSO, RTE, Incumbent suppliers – Analysis: CRE On March 31st 2009, approximately 775,000 non residential sites and 884,000 residential sites have contracts at market prices.
Electricity and gas market observatory Q1 2009 10 / 49 C. Market shares on March 31st 2009, in number of sites
Share of sites for each type of contract on March 31st 2009
8%
Sources: DSO, RTE, Incumbent suppliers – Analysis: CRE NB: TaRTAM sites are included with sites at market prices
On March 31st 2009, around 5% of sites have contract at market prices, amongst which 4% have chosen an alternative supplier.
D. Market shares on March 31st 2009, in electricity consumption
Share of consumption for each type of contract on March 31st 2009
9%
Sources: DSO, RTE, Incumbent suppliers – Analysis: CRE NB: TaRTAM sites are included with sites at market prices
Electricity and gas market observatory Q1 2009 changed with the new law on TaRTAM established on the 4th of August 2008 giving the possibility to clients who have chosen contracts at market prices to benefit from the TaRTAM if they ask their provider before 30th of June 2010. The TaRTAM is equal to the regulated retail tariff exclusive of tax, increased by 23% for green tariffs, 20% for yellow tariffs, and 10% for blue tariffs.
On the 31st of March, around 3,520 sites (0.4% of non residential sites with contracts at market prices) benefit from the TaRTAM. They represent an annual consumption of 84 TWh, i.e. 64% of the consumption of non residential sites with contracts at market prices.
Large non residential sites account for 86% of TaRTAM sites, and almost 100% of TaRTAM consumptions.
Less than 1% of small and medium non residential sites with contracts at market prices have chosen to benefit from the TaRTAM.
26 suppliers provide TaRTAM sites. 35% of TaRTAM sites representing 30% of TaRTAM consumption have chosen to benefit from the TaRTAM with an alternative supplier.
Share of TaRTAM sites within non residential sites with contracts at market prices on March 31st 2009
Other sites with contracts at market price TaRTAM sites
Sources: suppliers – Analysis: CRE Note: on March 31st 2009, among 22,000 medium non residential sites with contracts at market prices, 2% has chosen to benefit from the TaRTAM.
Electricity and gas market observatory Q1 2009 12 / 49
Share of TaRTAM consumption within non residential sites with contracts at market prices on March 31st 2009
97%
69%
~ 0%
64%
3%
36% 31%
~ 100%
All sites with contracts at market price
(132 TWh)
Large non residential sites with contracts at
market price (121 TWh)
Medium non residential sites with contracts at
market price (3 TWh)
Small non residential sites with contracts at market price
(8 TWh)
Other sites with contracts at market price
TaRTAM sites
Source: Suppliers – Analyses: CRE
Electricity and gas market observatory Q1 2009 13 / 49 F. Active suppliers on March 31st 2009
List of national active suppliers declared at CRE4 on March 31st 2009
Suppliers, trademark(s)
Large non residential
sites
Medium non residential
sites
Small non residential
sites
Residential sites Alternative suppliers5
Atel Energie
● ●
Direct Energie
● ● ●
Edenkia
● ●
E.ON Energie
●
Enercoop
● ● ●
EGL
●
Endesa Energia
●
Enel France
●
● ● ●
GDF Suez
● ● ● ●
HEW Energies
●
Iberdrola
●
4 The list of suppliers and trademarks is an extract from CRE’s suppliers list updated on May 20th 2009.
5 See electricity glossary for alternative supplier definition.
Electricity and gas market observatory Q1 2009
Sources: DSO, RTE, energie-info – Analysis: CRE The table lists suppliers who, in the last day of the quarter of the observatory and for each segment of customers:
• are registered in the search engine of suppliers by zip code, online on the website www.energie-info.fr 7
• are national i.e. they did declare offering contracts in at least 90% of the French cities connected to the electricity network (excluding Corsica);
• are actives if they fulfil at least one of these conditions:
● they supply at least one site with integrated contract,
● they are a balancing responsible entity of at least one site with a transmission contract/distribution contract,
● they are a balancing responsible entity and they delivered part of a site consumption during the last quarter.
Suppliers who did not wish to appear in the suppliers lists or did not declare offering contracts in more than 90% of the French cities for at least a segment of customers are not quoted.
On March 31st 2009, about 160 local suppliers are active within the territory including the incumbent suppliers (local distribution companies8). These suppliers operate locally or regionally and offer contracts to one or more segments of customers.
6 See electricity glossary for incumbent supplier definition.
7 Online since September 2008, the search engine is built from the information volontarily provided by suppliers.
8 See electricity glossary for local distribution company.
Electricity and gas market observatory Q1 2009 15 / 49 4. Dynamic analysis: 1st Quarter 2009
A. Summary table for the last quarters
The gross adds per month are equal to the number of sites which have signed a contract within the given month (sites which have been connected or sites which have switched to another supplier). The gross adds at market prices or regulated tariffs are a relevant indicator for measuring the commercial competitiveness of the different suppliers, in terms of acquisition of new sites.
Residential sites Non residential sites During quarter
Total gross adds 1,028,000 1,122,000 117,000 123,000
• Gross adds for alternative
suppliers 237,000 213,000 12,000 13,000
Alternative suppliers’ market shares
within all gross adds 23.0% 19.0% 10.2% 10.6%
Sources: DSO, RTE, Incumbent suppliers – Analysis: CRE Technical information: gross adds data are rounded, but alternative supplier’s market are calculated from real figures.
B. Gross adds for the last months
Decomposition of monthly gross adds
Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09
Incumbent suppliers Alternative suppliers
Sources: DSO, RTE , Incumbent suppliers – Analysis: CRE
Electricity and gas market observatory Q1 2009 16 / 49
Decomposition of gross adds by provider type during the 1st 2009 quarter
93%
92%
7%
8%
Connections (total 943,000)
Suppliers switch (total 202,000)
Incumbent suppliers Alternative suppliers
Sources: DSO, RTE, Incumbent suppliers – Analysis: CRE Note: During the 1st 2009 quarter, alternative suppliers were at the origin of 7% of 943,000
connections.
Electricity and gas market observatory Q1 2009 17 / 49