European energy market liberalization started more than 20 years ago to improve efficiency in the market for electricity and gas.

Liberalization has had significant consequences:

  • Increasingly growing market competition
  • A trend of consolidation between small suppliers
  • Margin loss in the B2C market has forced retailers to innovate and introduce new and differentiating services to clients through digitalization

At Pearsons Consulting Ltd, we work closely with major and medium-sized utilities to turn the above issues into opportunities by helping them optimize their operational processes and better address their clients’ needs.

Our understanding of the current challenges:

There are clear trends in the behavior of suppliers regarding their offers:

  • Non-commodity offers such as contracting, PV, e-mobility products
  • Bundle offers (electricity & gas) promoted by alternative suppliers and 100% digital offers shortly after their access to the market
  • Willingness to be disruptive on some offers, still emerging on the incumbent market – offers coupled with IoT, green energy, personal consumption
  • Strong ambitions in customer acquisition through various channels, including ecosystems

In addition to a fiercely competitive environment, European energy retailers face four main types of challenges: