Business News

Petrol Enters Electricity Retail Market

Ljubljana, 09 September (STA) - Energy company Petrol started selling electricity to households and small companies around Slovenia on Thursday, saying the idea was to be the first to provide comprehensive one-stop supply of energy products for all types of customers.

"This is an important asset for Petrol, a new product in a filed where Petrol has not been an active player so far," the company's management board member Rok Vodnik told the press in Ljubljana.

He noted that electricity would become increasingly important in the future. "In the future, many users, using new technology, will switch to electricity. This is as segment where Petrol, an energy company, needs to be present."

Electricity has not played a major role at Petrol so far. The company wishes to secure a 1% market share in the households segment by the end of this year, while selling a total of 309 gigawatt hours of electricity.

The target set for 2014 is 2,150 gigawatt hours both retail and wholesale, Vodnik said. He added that Petrol currently gets electricity from different suppliers both domestic and from abroad.

Head of Petrol's electricity department Gorazd Skubin explained that the company had already been offering electricity to major industrial clients. "Petrol got some experience here, which means it is not a complete newcomer in this field."

Petrol has joined a group of five electricity distributors and the Gen-I group as the third provider of electricity to households in Slovenia, with the company feeling that bringing all forms energy products under one roof gives it an important edge over competitors. Clients will be able to cover all of their energy costs with a single payment, Skubin pointed out.

The company hopes to secure EUR 23m in revenues through the sale of electricity this year, while the figure projected for 2014 is EUR 136m. The target market share in the supply to household and small business in 2014 is 5-8%, Vodnik announced.

Petrol plans to gradually expand its energy activities to other markets in SE Europe where it is already present. It wants to focus on major industrial clients, while more attention to retail will probably given after 2014 or after the liberalisation of this markets.

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