Price, environment, market share … E. Leclerc can revolutionize the electricity market?



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Hypermarket E. Leclerc December 20, 2016. – GILE MICHEL / SIPA

After the big bang of the fuel market, E. Leclerc is preparing to upset the electricity market ? In any case, the sign does not hide its (very) great ambitions:
in a column published Monday on his blog, Michel-Edouard Leclerc, aims nothing less than to conquer "three million customers by 2025, 10% of the market" with a "green" offer, "the cheapest of the market ". Credible?

Until the details of the offer launched on August 27, 20 Minutes review the issues posed by the sensational offensive of the distributor in the electricity market.

Will Leclerc break market prices for a long time?

This is what Michel-Edouard Leclerc promises: in his gallery, the CEO of the E.Leclerc group promises to propose to individuals the offer of supply of electricity "the least expensive of the market, including compared to that of newcomers", adding that these "energy tariffs will be guaranteed 1 year, and therefore it will not be a promotional offer launch. "

" Like all electricity distributors in France, we pay the taxes and routing fees that are the same. However, we are able to offer an offer at the best price, by acting on the only part of the price left to the discretion of each supplier: the costs of supply and marketing. In other words, we are reducing our margins, "says the CEO on his website

According to Europe 1, this offer will be 16% lower than the regulated tariffs offered by EDF. This is better than the 15% rebate granted by Casino, through its subsidiary CDiscount, since entering the electricity supply market last November. This would represent "about 200 euros of savings per year," according to radio. But beware: this discount should not be seen directly on the bill but will be donated "vouchers in its stores". "" Customers holding our loyalty card [14,2 millions] will benefit from the largest discount with voucher discounts, knowing that all our future customers will benefit from a competitive price ",
said Tuesday at Figaro Michel-Edouard Leclerc without revealing its tariffs.

Another point of vigilance for the consumer: "It is very likely that this rebate applies on the tariff per kWh but not on the total bill: with taxes, and the costs related to the distribution and transport network, the reduction will probably be only 12% in the end, "says Nicolas Mouchnino, project manager energy and environment at the UFC- Que Choisir

The expert also doubts that E. Leclerc is able to maintain these competitive prices in the long term. "The offer is guaranteed one year; but after ? It is generally observed that the players enter the market with shattering offers but that it does not last because they are very dependent on the evolution of the wholesale market which tends to increase at the moment … to the disadvantage of distributors who do not produce their own energy, "notes Nicolas Mouchnino.

What will be the supply of electricity" green "Energies E.Leclerc?

Hold a hyper-competitive tariff with a label of electricity" green ", that's it the other great promise of Michel-Edouard Leclerc that leaves the experts skeptical.

"Energies E. Leclerc offers a" green "offer and will compensate by buying a certificate of electricity" Guarantee of origin "certifying that each KWh purchased electricity was produced from a renewable energy source (hydro, wind and solar), "says the CEO on his site. But for Myriam Maestroni, founder of the platform Payermoinscherlenergie.fr cited by Les Echos "to hold such a tariff with exclusively wind or solar […] seems impossible", unless "that we considers nuclear as a green energy ",

" Today, out of about 60 existing alternative energy offers, about half are labeled "100% green", but between the most expensive and the cheapest, we observe 400 euros of difference per year for the use of a water heater, "says Nicolas Mouchnino. Why such a difference ? "Because in the current state of regulation the label" green energy "covers very different strategies: the most expensive offers will combine guarantees of origin and direct purchase to producers of renewable electricity (wind, solar or photovoltaic), while the cheaper ones will be satisfied with guarantees of origin but will supply themselves on the wholesale market with a clbadic energy mix (nuclear, fossil, renewable, etc.) And that the consumer does not know it and can not necessarily know. "

The UFC project manager that we choose therefore advises consumers to compare the different offers before" to be seduced by a fantastic offer "but also to compare them regularly afterwards for to ensure that their offer is always competitive, "as for the mobile telephony."

E.Leclerc can carve out the lion's share of the supply chain market alternative energy generators?

E.Leclerc has succeeded in gaining a foothold in the fuel market and is planning to double the stake by becoming the "alternative electricity supplier of reference". The objective posted by its CEO is clear: recruit "3 million customers by 2025, 10% of the market."

Realistic? "It's very ambitious and it seems very difficult in my own growth," says UFC-Que Choisir. And for good reason: according to the Energy Regulatory Commission (CRE), of the 32.4 million private customers in France, only 6.25 million French households, or 19% of the population, are now in France. so-called "market" offer at the end of June, and almost all of them (17.9%) chose an alternative supplier to the incumbent operator (Engie, Direct Energie, Total Spring, etc.).

Achieve 10% of market share seems to be very complicated. But it is true that the new entrant will benefit from a very favorable dynamic: while in 2015, 28,000 customers were leaving the regulated tariff each month, they are 120,000 each month in 2018, according to the consumer protection badociation UFC- What to choose. While the number of operators has increased from ten to more than 20 over the same period.

To carry out its operation of conquest, the distribution group can also count on its network of supermarkets which constitute a marketing support extraordinary. "Supermarkets have access to customers regularly, that's what can change things. Because when we go to see people in hypermarket galleries and tell them they can try, some who would never have done will say "why not," summed Monday at the microphone of Europe 1 the mediator of the Jean Gaubert energy

The main obstacles to the opening of the electricity market to competition remain the reluctance or the ignorance of many customers of their rights to change operator. "Many still think it pays or that it causes power cuts and fear not to return to EDF if they change their minds," says Nicolas Mouchnino. The group E. Leclerc, badured him, "the change of supplier will be free and entirely managed by" Energies E.Leclerc ", and the new service will be operational within 1 and 3 working days for a change of supplier and within 10 days worked for a first commissioning. More than an aggressive commercial solicitors, it is undoubtedly pedagogy that E. Leclerc will need to succeed his bet.

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