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In fact, the boom of independent marketers is due to the fact that a large number of responsible consumers did not shake their pulse to make the decision to switch from one of the large energy companies to a much smaller and recently created one but with a bet very clear to the use of green energy.
The energy traders, which started quietly, have been consolidating themselves as a firm alternative to the old large electricity companies that previously enjoyed an absolute monopoly. In this post, the causes of the increase in independent energy marketers are cited; These are characterized by mainly offering green energy and giving a leading role to the consumer.
Causes of Boom of Independent Marketers
One of the aspects that has favored the rise of the new independent electricity companies has been that the consumer, tired of the continuous increase in the price of electricity, has looked for new alternatives. In addition, the new electricity companies want to use green energy and are committed to the environment and are responsible for their environment.
Also, the liberalization of the sector has helped a lot to the consolidation of the new and independent energy companies; and gain a foothold among the large energy companies.
As we have mentioned previously, consumers have taken a leading role and the new marketers must improve the service they provide to the consumer, giving them greater participation in demand management and self-consumption, with more competitive rates. Now it is the consumer who chooses which rate to contract and with which energy company.
The consumers great protagonists
Faced with this new paradigm, customers are no longer reluctant to change electricity companies and abandon the large companies that come from the old monopoly. Now they dare to compare prices, to choose the electricity rate that best suits their needs and increasingly, they demand that the energy that is sold to them be totally green energy.
Currently, consumers want to know that they are paying, what they are consuming and choose the rate that best suits their needs. Increasingly, the consumer plays an important role and now it is he who is in charge.
Independent versus large electricity retailers
In a very short space of time, independent traders went from being almost non-existent to being a great threat to the large electricity companies.
But how to ensure that energy comes from renewable sources if the large electricity companies have a large part of their production based on coal plants, combined cycle plants and other polluting modalities?
They achieve this in the following way: by buying guarantee certificates of renewable origin from third parties, thus they are able to offer responsible consumers what they demand, but without having to change their production and business model.
New challenges for independent marketers
The main companies in the energy sector point to big changes in the imminent future; due to the advance of renewables and the rise of new business models.
Renewable energies will take over from coal projects, and gas generation will be increasingly important to sustain the flexibility of the system. Likewise, an increase in investment in new technologies is expected, and the proliferation of innovative start-up projects,
To adapt to this stage of transformation, companies in the sector are modifying their portfolios, which translates into a rebound in M&A activity in the sector. Thus, in 2017, corporate operations worth 200,000 million dollars were registered in the sector worldwide, the highest level in the last 8 years, according to the latest edition of the study ‘Power Transactions and Trends’, prepared by EY.
Spain was the third most active market in Europe and the sixth in the world in transactions in the sector, registering operations for a value of 7.2 billion dollars, only surpassed by the United Kingdom and Germany. These figures indicate that, after the uncertainty generated by the latest regulatory changes of scope both in the remuneration of renewable energy and in the distribution activity, the sector in Spain seems to have returned to stability, with solid growth expectations in the future.
SPS is committed to the use of green energy
At SPS we are committed to green energy. If you are a customer and you want to commit, you can ask us for green energy from “your customer area” on our website or by phone our web. And if you are not yet a customer, you can request it during the online or telephone contracting process. Switching to a more sustainable electric company has never been easier!
For this reason, at SPS we are sure that the use of green energy is the only option and bet on the future.