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 BearingPoint, 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:

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