This article starts with WeChat public number: China energy network. Article content is the author's personal point of view, does not mean and information network position. Investors hereby operate, the risk at their own risk.

What type of company can win in the competition for sale

Selling electricity in the end is the opportunity to depression or trap. In fact, we can see registered in the domestic sales of electricity companies, in addition to the funds have certain requirements, this piece of hardware equipment is not necessary. I have tried to analyze the potential development of the country through the UK. Britain had five regional monopoly power companies
(EDF, E.ON, Npower, SSEandScottishPower) plus natural gas monopoly enterprise BritishGas, hereinafter referred to as the six companies as short. After the reform of the UK power system, the government allowed companies to cross-regional and cross-energy categories to sign customers. Into the domestic popular that is the national network and the South to the other side of the site to sign customers, but also the sale of natural gas. As of 2015, about 31 residents of residential electricity sales in the UK electricity market and about 43 of non-resident electricity sales companies (of course, these two figures are repeated).

1) residential electricity market

About 90% of the British residents or the six had a regional monopoly of the company's customers, of course, "cake distribution" has changed. The following figure is a description of the geographies of natural gas and electricity customers.
The Blue Line reflects the proportion of customers who have previously monopolized companies in their own regions. We can see is gradually declining.

The red line represents, in a region, the company that has monopolized, the other five big companies. We can see until 13-14 years by a gradually rising process.

The green line represents the market share of the new independent sales company. Through some "wild way" to obtain a slight increase.

So it is not difficult to conclude: as a resident user, although willing to replace their own electricity sales company, but still relatively easy to chase brand effect. So the national network and the South network sales business share may go through a period of decline, but take over should also be familiar with some large enterprises (such as power generation group, natural gas service companies and integrated service-oriented large enterprises). Of course, a small company out of some wild way, to benefit the people, nor is it impossible to obtain residents of the customer.

So it is not difficult to conclude: as a resident user, although willing to replace their own electricity sales company, but still relatively easy to chase brand effect. So the national network and the South network sales business share may go through a period of decline, but take over should also be familiar with some large enterprises (such as power generation group, natural gas service companies and integrated service-oriented large enterprises). Of course, a small company out of some wild way, to benefit the people, nor is it impossible to obtain residents of the customer.

2) non-resident electricity market

The nonresident users referred to here refer to industrial and commercial users. The following figure is 15 years in June British industrial and commercial users electricity sales accounted for. The left side of the nHH represents a small business users, while the right HH is a large industrial and commercial users. From the figure we can read the following points:

Compared to the six companies in the resident market 90% of the share, non-resident market left "latecomers" more opportunities.

Especially for large industrial and commercial customers, only the first four are traditional monopoly energy companies. The remaining nearly 37% of the market share, the remaining two monopolies will be a little bit, and then are joined by the power market after the liberalization of the enterprises.

So come to the second conclusion: later who want to make a difference in the electricity market, or should focus on cultivating commercial and industrial electricity market. After all, industrial and commercial users demand electricity, the price is more sensitive.

3) Profitability

The EBIT percentage of the six companies is shown below. Blue line represents the profitability of the residential electricity market, while the red represents the profitability of industrial and commercial electricity. From the chart can reflect two points:

The profits of the six companies in the residential electricity market are slowly higher, and because of their 90% market share, the vast majority of the profits in the market are falling into their hands.

The profits of the six companies are still declining. Personally considered to be due to the price war of the newly added sale company.

In summary, the vast majority of the electricity market share or will be a certain basis for large enterprises away. While small businesses can try to focus on the development of business users and build unique energy pricing programs to attract some resident users.
In summary, the vast majority of the electricity market share or will be a certain basis for large enterprises away. While small businesses can try to focus on the development of business users and build unique energy pricing programs to attract some resident