Enel Energie, the energy trading company of Italy's Enel, is to double its market share, number of customers and turnover after it concludes the deal with Electrica Muntenia Sud.
The main way by which the company will boost turnover will be by launching its own energy generation operations as the Italians are ruling out the acquisition of another supplier. "At present, Enel Energie owns 11% of the overall electricity supply market. As Electrica Muntenia Sud holds 12% of the market, after the purchasing process is over Enel will come to control 23% of the market," Mario Coni, the general manager of Enel Energie told ZF.
The company was formed after supply operations (electricity sale i.e.) were split from distribution operations (the electricity transmission network), a measure that became compulsory at the middle of the year for all energy companies. Enel Energie encompasses the supply operations of the two Electrica subsidiaries the Italians took over, Electrica Banat and Electrica Dobrogea, with the supply business of Electrica Muntenia Sud to be included in this structure, as well.
This summer, the Italians were declared winners of the privatisation process of the most valuable electricity distribution company, agreeing to pay 820m euros. The share swap has not been accomplished, yet. Enel Energie has 500 employees, with their number to increase after the integration of Electrica.
"(...) Enel is the unique interface with household and corporate customers, both on the captive and free market," says Coni.
While the integration of Electrica Muntenia Sud's customer portfolio will double Enel Energie's turnover, the increase can be further sustained only by the company's getting its own production facilities. "(...) A strong foothold in the generation sector will ensure rising competitiveness for Enel Energie on the long term," specifies Coni.
The Italian company says it will not buy an energy supplier, with the only way of securing further growth being the launch of its own production activities.
"At present, we do not have such acquisitions in mind," answered Coni when asked whether Enel was interested in acquiring energy traders. The Italians are largely buying energy from the OPCOM energy market, but are underscoring the importance of privatisation in this domain.
Coni also believes the privatisation of the production sector and emerging competition would drive electricity prices down on the long term.
As regards the household customer segment, Coni does not foresee any major changes on the short term, given the similar experience of other countries. Currently, Enel Energie has 1.4 million household customers, a number set to rise to 2.5 million once Electrica Muntenia Sud is integrated.
Enel Energie
Is to double its market share, number of customers and turnover after it concludes the deal with Electrica Muntenia Sud.
The main way by which the company will boost turnover will be by launching its own energy generation operations
Is set to control 23% of the market
Has 1.4 million household customers, a number set to rise to 2.5 million once Electrica Muntenia Sud is integrated
Has 500 employees, with the number to rise after Electrica integration
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