1. Introduction
The deregulation of the French gas market10 took place in several stages:
- from August 2000, all sites with an annual gas consumption over 237 GWh and all electricity generators or simultaneous electricity and heat generators whatever their annual consumption level became eligible
- from August 2003, all sites with an annual gas consumption over 83 GWh became eligible - from July 2004, all companies and local government agencies became eligible
- from July 2007, all customers became eligible, including residential customers.
The French retail market represents 11.5 million sites, which accounts for 501 TWh11 annual gas consumption.
Each customer has the choice between two different types of contract:
- Contracts under regulated tariffs (offered by incumbent suppliers only)
- Contracts at market prices (offered by incumbent suppliers and alternative suppliers).
Distribution of gas contracts illustrative diagram
The data sources of the observatory originate from transmission system operators (GRTGaz, TIGF);
distribution system operators (GrDF, Regaz, Réseau GDS, and Gaz Electricité de Grenoble); and the incumbent suppliers (GDF Suez, Tegaz, Gaz de Bordeaux, Enerest and Gaz Electricité de Grenoble).
10 Natural gas, excluding firedamp and LPG.
11 In the rest of the document, the study boundaries are shortened to the customers linked to the main distribution system operators, which represent 500 TWh.
Electricity and gas market observatory Q1 2009 29 / 49 2. Customer segments and their respective weight
Typology of sites
41%
29%
94%
6%
0,01%
30%
number of sites gas consumption
Non residential sites connected to the transmission network
Non residential sites connected to the distribution network
Residential sites
Sources: data 2009 TSOs, DSOs – Analysis: CRE
The retail gas market is divided into three segments:
• The non residential sites connected to the Transmission network which are using gas for big industries
• The non residential sites connected to the Distribution network: any individual or legal entity purchasing gas, which is not for his own household use
• The residential sites: customer purchasing energy for his own household consumption, excluding commercial or professional activities.
Electricity and gas market observatory Q1 2009 30 / 49 3. Status on March 31st 2009
A. Summary tables Synthesis in number of sites
Residential sites Non residential sites Situation sites gained by alternative suppliers 508 000 416 000 101 000 96 000 Alternative suppliers’ market share
within all sites 4,7 % 3,9 % 15 % 14 %
Sources: TSOs, DSOs, incumbent suppliers – Analysis: CRE Synthesis in annualized consumption
Residential sites Non residential sites Situation
(annualized consumption) March 31st
2008
Sources: TSOs, DSOs, 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.
On the 31st of March, 1,210,000 sites have contract at market price, and 609,000 with alternative suppliers.
Electricity and gas market observatory Q1 2009 31 / 49
B. Evolution of the number of sites with contract at market prices
Total number of sites with contract at market prices - Non residential sites
-0
Sources: TSOs, DSOs, incumbent suppliers – Analysis: CRE
Total number of sites with contract at market prices - Residential sites -
0
Sources: TSOs, DSOs, incumbent suppliers – Analysis: CRE
Electricity and gas market observatory Q1 2009 32 / 49 C. Market shares on March 31st 2009, in number of sites
Share of sites for each type of contract on March 31st 2009
15%
Sources: TSOs, DSOs, incumbent suppliers – Analysis: CRE
On March 31st 2009, about 10% of all sites have contract at market prices; half of them have chosen an alternative supplier.
D. Market shares on March 31st 2009, in annualized consumption
Share of annualized consumption for each type of contract on March 31st 2009
Sources: TSOs, DSOs, incumbent suppliers – Analysis: CRE
Electricity and gas market observatory Q1 2009 33 / 49 E. Geographic analysis on March 31st 2009
Market shares of alternative suppliers in each Balancing zone12 on March 31st 2009
- number of sites - - annualized consumption -
Sources: TSOs, DSOs, incumbent suppliers – Analysis: CRE
Note: On March 31st 2009, in the South-West balancing zone, 4.5% of sites and 4.4% of consumption are held by alternative suppliers.
12 See the glossary for Balancing zone definition
Market share < 5%
Market share between 5 and 10%
Market share > 10%
Market share < 1.5%
Market share between 1.5 and 5%
Market share > 5%
Electricity and gas market observatory Q1 2009 34 / 49 F. Active suppliers on March 31st 2009
List of national suppliers declared at CRE13 and active on March 31st 2009
Supplier, trademark(s)15
Non residential sites transmission
network
Non residential
sites distribution
network
Residential sites
Alternative suppliers16 of natural gas
Altergaz
EDF
ENI S.p.A succursale France
E.ON Energie
Gas Natural
Gaz de Paris
Gazprom Marketing &
Trading Ltd
Iberdrola
Poweo
Soteg
13 Suppliers’ name, and trademarks are extracts from CRE’s suppliers’ lists on May 20th 2009
Electricity and gas market observatory Q1 2009 35 / 49 Supplier, trademark(s)
Non residential sites transmission
network
Non residential
sites distribution
network
Residential sites
Wingas GmbH & Co.
KG
Incumbent suppliers14 natural gas
GDF Suez
Tegaz
Sources: TSOs, DSOs , 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 15;
• are national i.e. they did declare offering contracts in at least 90% of French cities connected to the gas network16;
• are active if they are shipper and supplier of at least one customer in the segment.
Suppliers who did not wish to appear in the suppliers lists or did not declare offering contracts in more than 90% of French cities for at least a segment of customers are not quoted.
On March 31st, about 30 local suppliers are active within the territory: 22 incumbent suppliers (LDCs17).and several alternative suppliers. Theses suppliers operate locally or regionally and offer contracts to one or more customer segments.
14 See gas glossary for alternative and incumbent supplier definition
15 Online since September 2008, the search engine is built from the information volontarily provided by suppliers. Le web site energie-info.fr has been developed by CRE, the « Mediateur national de l’énergie », and with the collaboration of DGCCRF and DGEC.
16 When a supplier signs up in the search engine, he has to declare all the cities in which he offers contracts. This condition is not available for suppliers of non residential sites connected to transmission network.
17 See glossary for Local Distribution company definition
Electricity and gas market observatory Q1 2009 36 / 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 Alternative suppliers’ market shares
within all gross adds 41 % 35 % 43 % 41 %
Sources: TSOs, DSOs – Analysis: CRE Technical information: gross adds data are rounded, but alternative supplier’s market shares are calculated from real figures.
B. Gross adds for the last months
Decomposition of monthly gross adds
0
oct.-08 nov.-08 déc.-08 janv.-09 févr.-09 mars-09
Fournisseurs historiques Fournisseurs alternatifs
57 000
47 000
Sources: TSOs, DSOs – Analysis: CRE
Electricity and gas market observatory Q1 2009 37 / 49
Decomposition of gross adds by provider type during the 1st 2009 quarter
33%
96%
67%
4%
Mises en service (269000 au total)
Changements de fournisseur (44000 au total)
Fournisseurs historiques Fournisseurs alternatifs
Sources: TSOs, DSOs – Analysis: CRE Note: During the 1st 2009 quarter, alternative suppliers were at the origin of 33% of 269,000 connections.
Electricity and gas market observatory Q1 2009 38 / 49