Introduction

The ‘Effective Utility Company Customer Acquisition and Retention Strategies’ report achieves a geographic balance by covering markets in the US and Australia in addition to the European markets. The report includes Victoria (Australia), the United Kingdom, Texas (US), Germany, the Netherlands, Italy, and Spain. The report contains statistical data on annual average electricity switching rates.

Features and benefits

* Achieve a comprehensive understanding of how electricity deregulation influences electricity supply and reduces overall electricity prices. * Identify the key trends emerging in some of the largest global deregulated electricity markets with the removal of retail price regulation. * Assess key factors impacting electricity switching trends in the markets of Victoria, the UK, Texas, the Netherlands, Germany, Italy, and Spain. * Understand how utilities are developing business strategies to acquire and retain customers across deregulated electricity markets. * Analyze future electricity switching trends in the deregulated markets of Victoria, the UK, Texas, the Netherlands, Germany, and Spain.

Highlights

Going forward, deregulated electricity markets will likely experience greater switching activity with the entry of an increased number of private players in the electricity market and continued competition in providing electricity and related energy services. Victoria recorded the highest switching rate of 25.3% (lower compared to an average annual rate of 27% during 2008) in retail energy market globally in 2009. The UK’s annual average switching rate indicates a strong preference for the country’s electricity customers to switch their respective energy provider regularly.

Your key questions answered

* What is the status of the electricity market structure before and after the introduction of deregulation? * What is the annual average electricity switching rate across the markets of Victoria, the UK, Texas, the Netherlands, Germany, Italy, and Spain? * What are the factors influencing electricity switching rates globally? * What is the business strategy adopted by key electricity retail players across markets. * What are the key challenges faced by major energy suppliers, while they supply electricity to customers in each market?

Disclaimer 2
Preface 9

Executive summary 12
Introduction 12
Switching strategies in Victoria 13
Switching strategies in the United Kingdom 14
Switching strategies in Texas 15
Switching strategies in the Netherlands 16
Switching strategies in Germany 17
Switching strategies in Italy 18
Switching strategies in Spain 19
Future outlook 20

Chapter 1 Introduction 21
Summary 21
Electricity deregulation 22
Electricity market structure after deregulation 23
Impact of electricity market reforms 24
Dual fuel strategies 28
Key trends 32
Emergence of retail price deregulation 32
Expanding the value chain through customer service 33

Chapter 2 Switching strategies in Victoria 34
Summary 34
Overview of the electricity market in Victoria 35
Installed electricity generation capacity and net electricity generation in Victoria 36
Installed electricity generation capacity in Victoria 36
Net electricity generation in Victoria 37
Electricity market structure in Victoria 38
Market reforms 39
Electricity switching in Victoria 40
Small customer switching rate in Victoria 41
Key players 42
Business strategies of key players 44

Chapter 3 Switching strategies in the United Kingdom 46
Summary 46
Overview of the electricity market in the United Kingdom 47
Installed electricity generation capacity and net electricity generation in the United Kingdom 47
Installed electricity generation capacity in the United Kingdom 47
Net electricity generation in the United Kingdom 49
Electricity market structure in the United Kingdom 50
Market reforms 51
Electricity switching in the United Kingdom 52
Key players 54
Business strategies of key players 56

Chapter 4 Switching strategies in Texas 59
Summary 59
Overview of the electricity market in Texas 60
Installed electricity generation capacity and net electricity generation in Texas 60
Installed electricity generation capacity in Texas 60
Net electricity generation in Texas 62
Electricity market structure in Texas 63
Market reforms 64
Electricity switching in Texas 65
Key players 68
Business strategies of key players 69

Chapter 5 Switching strategies in the Netherlands 71
Summary 71
Overview of the electricity market in the Netherlands’ 72
Installed electricity generation capacity and net electricity generation in the Netherlands 72
Installed electricity generation capacity in the Netherlands 72
Net electricity generation in the Netherlands 73
Electricity market structure in the Netherlands 74
Market reforms 75
Electricity switching in the Netherlands 76
Key players 79
Business strategies of key players 80

Chapter 6 Switching strategies in Germany 83
Summary 83
Overview of the electricity market in Germany 84
Installed electricity generation capacity and net electricity generation in Germany 84
Installed electricity generation capacity in Germany 84
Net electricity generation in Germany 86
Electricity market structure in Germany 87
Market reforms 87
Electricity switching in Germany 88
Key players 89
Business strategies of the key players 90

Chapter 7 Switching strategies in Italy 94
Summary 94
Overview of the electricity market in Italy 95
Installed electricity generation capacity and net electricity generation in Italy 95
Installed electricity generation capacity in Italy 95
Net electricity generation in Italy 97
Electricity market structure in Italy 98
Market reforms 99
Electricity switching in Italy 101
Key players 101
Electricity generation 101
Electricity distribution 103
Business strategies of key players 103

Chapter 8 Switching strategies in Spain 105
Summary 105
Overview of the electricity market in Spain 106
Installed electricity generation capacity and net electricity generation in Spain 106
Installed electricity generation capacity in Spain 106
Net electricity generation in Spain 108
Electricity market structure in Spain 109
Market reforms 110
Electricity switching in Spain 113
Key players 114
Key players' market share in Spanish electricity market by customer type 116
Business strategies of key players 118

Chapter 9 Future outlook 120
Summary 120
Outlook for deregulated electricity markets 121
Appendix 124
Glossary 124
List of companies covered in the report 126

Table of figures
Figure 1: Electricity market structure before deregulation, 2002 23
Figure 2: Electricity market structure after deregulation, 2002 24
Figure 3: Select countries electricity retail market deregulation timeline, 2009 28
Figure 4: Annual average electricity switching rate 2009 (%) 32
Figure 5: Victoria, installed electricity generation capacity 2007–10 (MW) 37
Figure 6: Victoria, net electricity generation 2005–09 (GWh) 38
Figure 7: Victoria, annual average electricity switching rate 2005–09 (%) 41
Figure 8: Small customer switching rate in Victoria 2006–10 (%) 42
Figure 9: Victoria, key players’ electricity customers market share as of June 2010 (%) 44
Figure 10: United Kingdom, installed electricity generation capacity 2005–09 (GW) 48
Figure 11: United Kingdom, net electricity generation 2005–09 (TWh) 49
Figure 12: United Kingdom options for electricity reforms, 2010 52
Figure 13: United Kingdom, annual average electricity switching rate 2001–09 (%) 54
Figure 14: Texas, installed electricity generation capacity 2005–09 (MW) 62
Figure 15: Texas, net electricity generation 2005–09 (TWh) 63
Figure 16: Texas, annual average electricity switching rate 2003–09 (%) 68
Figure 17: Netherlands, installed electricity generation capacity 2004–08 (GW) 73
Figure 18: Netherlands, net electricity generation 2005–09 (TWh) 74
Figure 19: Netherlands, annual average electricity switching rate 2004–09 (%) 78
Figure 20: Germany, installed electricity generation capacity 2004–08 (GW) 85
Figure 21: Germany, net electricity generation 2005–09 (TWh) 86
Figure 22: Germany, annual average electricity switching rate 2006–09 (%) 89
Figure 23: Italy, installed electricity generation capacity 2005–10 (MW) 96
Figure 24: Italy, net electricity generation 2005–09 (TWh) 98
Figure 25: Key players in electricity generation capacity and their market share (%), 2008–09103
Figure 26: Spain, installed electricity generation capacity 2005–09 (MW) 107
Figure 27: Spain, net electricity generation 2005–09 (TWh) 109
Figure 28: Spain, electricity customers 2004–09 112
Figure 29: Spain’s annual average electricity switching rate 2006 (%) 114
Figure 30: Electricity generation market share of major utilities 2009 (%) 116
Figure 31: Key players' market share in Spanish liberalized electricity market in 2009 (%) 118

Table of tables
Table 1: Global energy retail market rankings (2009), Part I 10
Table 2: Global energy retail market rankings (2009), Part II 11
Table 3: Select countries electricity retail market deregulation timeline Part I, 2009 26
Table 4: Select countries electricity retail market deregulation timeline Part II, 2009 27
Table 5: Annual average electricity switching rate, 2001–09 (%) 31
Table 6: Victoria, installed electricity generation capacity 2007–10 (MW) 36
Table 7: Victoria, net electricity generation 2005–09 (GWh) 38
Table 8: Victoria, annual average electricity switching rate 2005–09 (%) 40
Table 9: Small customer switching rate in Victoria 2006–10 (%) 41
Table 10: Victoria, key retail electricity players as of June 2010 43
Table 11: United Kingdom, installed electricity generation capacity 2005–09 (GW) 48
Table 12: United Kingdom, net electricity generation 2005–09 (TWh) 49
Table 13: United Kingdom, annual average electricity switching rate 2001–09 (%) 54
Table 14: Texas, installed electricity generation capacity 2005–09 (MW) 61
Table 15: Texas, net electricity generation 2005–09 (TWh) 63
Table 16: Texas, annual average electricity switching rate 2003–09 (%) 68
Table 17: Netherlands, installed electricity generation capacity 2004–08 (GW) 73
Table 18: Netherlands, net electricity generation 2005–09 (TWh) 74
Table 19: Netherlands, annual average electricity switching rate 2004–09 (%) 78
Table 20: Germany, installed electricity generation capacity 2004–08 (GW) 85
Table 21: Germany, net electricity generation 2005–09 (TWh) 86
Table 22: Germany, annual average electricity switching rate 2006–09 (%) 89
Table 23: Italy, installed electricity generation capacity 2005–10 (MW) 96
Table 24: Italy, net electricity generation 2005–09 (TWh) 97
Table 25: Key players in electricity generation capacity and their market share (%), 2008–09102
Table 26: Spain, installed electricity generation capacity 2005–09 (MW) 107
Table 27: Spain, net electricity generation 2005–09 (TWh) 108
Table 28: Spain, electricity customers 2004–09 112
Table 29: Spain’s annual average electricity switching rate 2006 (%) 114
Table 30: Electricity generation market share of major utilities 2009 (%) 115
Table 31: Key players' market share in Spanish electricity market by customer type in 2009 117
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