The same is going to happen with the energy market, believes Martin Zmelik, general manager of CEZ Romania, the company that provides electricity distribution and supply services for 1.4 million consumers in the region of Oltenia, southearn Romania.
“Needs are more complex and the tendency is to have everything from a single source. Liberalization is a driver of the market, but the market itself is also changing. We see migration of our consumers as well. Some of them leave, others come back as it is not just price that matters in the end,” says Martin Zmelik, who took over the reins of CEZ Romania operations last summer.
The tendency is already visible on the market, where CEZ rivals have already launched locksmithery or electrical installation check-up services.
“We will focus on energy efficiency solutions. We want to be part of this market because we have such solutions in the Czech Republic as well. In 2015, we want to expand our portfolio. We’re mulling benefit programs to reward our clients’ loyalty.”
CEZ’s moves also come as quantities distributed by the company have been on a constant decline, a situation visible at the level of the entire economy, where energy consumption is below that of 2009, the weakest year for Romania.
“Distributed quantities dropped by 8% last year. We lost large clients and we see this consumption decline trend on the segment of large consumers. Instead, we see rising demand on the segment of small companies and households, though large consumers still weigh the most. Our region is not reflecting economic growth for the time being”.
CEZ distributed around 6.3 TWh of energy in 7 counties of Oltenia last year. Overall, CEZ Romania has over 1.4 million clients, being one of the largest energy distribution companies locally.
“For next year we expect a slight increase of 1-2%, but I estimate we registered a 20-25% decline in distributed quantities against 2008. We’re now looking at the portfolio of small companies. Moreover, I believe we will be able to regain a few clients,” said Zmelik.
“Additionally, there are also some moves on the irrigation segment. On the distribution segment we had a good year as we managed to curb losses in networks, which translated into savings of RON27 million.
A major problem CEZ is coping with on the local market is related to the situation of wind park Fantanele-Cogealac of Dobrogea.
Nonetheless, despite the falling quantities distributed and problems related to the wind park, Zmelik says 2014 was a good year for the company’s business in Romania.
(English version by Catalina Apostoiu)