The rating will be updated on a regular basis, and in the future, may be expanded to include gas suppliers
DiXi Group presented the pilot issue of the Electricity Supplier Rating. The presentation was conducted by DiXi Group expert Bohdan Serebrennikov, Ukrainian Energy reports.
“The Electricity Supplier Rating is an instrument allowing to regularly evaluate companies based on a set of indicators, compile their overall rating and ratings based on particular categories, make analytical generalizations and monitor the process. It will help consumers find out who is who in the market,” Mr. Serebrennikov said.
According to him, the rating is intended for both consumers and suppliers of electricity.
“This rating must help intensify competition. In other words, to provide certain impetus and certain motivation to suppliers to continuously improve their performance, develop their services, become more flexible in tariffing, improve communication with consumers… We saw that companies utilized only a third of their potential, and they still have a quite large room for improvement of their performance,” the expert said.
On the other hand, consumers will receive an instrument that could help them select a supplier.
“The supplier rating does not compare prices. For that purpose, they in Europe use special price comparison instruments. We have indicators concerning prices and tariffs, but we do not compare prices. Generally speaking, we believe that we can ideally help consumers if we give them both these instruments: an instrument of comparing supplier prices and a rating helping them sort out other aspects of the supplier’s operation,” Mr. Serebrennikov said.
He added that at the moment, DiXi Group presents its first pilot rating but have designed it as a regular instrument.
“Based on the evaluation of indicators, we averaged the rating score for every supplier. Our sample contains the 50 largest market players… We want the ratings of both electricity and gas suppliers to be regular, but for that, we need certain data from the NEURC. Regularity will provide constant impetus,” the expert stressed.
The Electricity Supplier Rating is a help to consumers and development of the electricity market
The Electricity Supplier Rating will prompt suppliers to compete among each other and help consumers select a supplier
It is hard for consumers to select when there is only one available supplier, but it is equally hard when there are over 800 of them. Therefore, in this situation consumers need help and instruments that make their choice easier, more informed, prudent and rational, DiXi Group President Olena Pavlenko said during the presentation of the pilot issue of the Electricity Supplier Rating.
“Ukraine’s energy markets are in the process of opening. Today, consumers in the gas market and some consumers in the electricity market (except households) can already choose and replace a supplier. It is hard for consumers to select when there is only one available supplier, but it is equally hard when there are over 800 of them (the approximate number of licensed suppliers in both the electricity and gas markets). Therefore, in this situation consumers need help: the instruments that make their choice easier, more informed, prudent and rational. The electricity and gas markets are still immature, and companies are only learning to compete for the consumer. In these conditions, the instruments that will intensify competition and stimulate companies to continuously improve their performance are also important,” she said.
According to Olena Pavlenko, strong foreign players – large European companies with the experience in competitive struggle and with operational customer service and relations systems – haven’t entered the Ukrainian market yet.
“Therefore, domestic players should start enhancing their competitive edge now, in order to be efficient in a liberalized, competitive, open market,” she added.
By presenting the Electricity Supplier Rating, DiXi Group thus promotes development of a competitive electricity market via independent monitoring of the process of reforming this market and assessment of market trends.
“The Electricity Supplier Rating is geared mainly toward two target audiences: suppliers and consumers. Consumers will receive access to aggregated information regarding online services, commercial offers, transparency and business activity of leading electricity supplier companies. And an easy access to evaluation of the competitors’ performance will ensure awareness of the best market practices and help suppliers improve their commercial performance with orientation toward consumer needs,” DiXi Group expert Bohdan Serebrennikov said.
The Electricity Supplier Rating could be of interest to potential investors and new players considering the possibility of entering the market, helping them understand the degree of sophistication of competitive advantages which market players have and the applicable commercial practices, the experts summarized.