AN INNOVATIVE APPROACH FOR A TRADITIONAL MARKET. AUDAX IN PORTUGAL
by Marc FARRIOL
The expansion of Audax Energía – then a very young company founded by José Elías – started from Portugal.
We were in 2013 and the Portuguese energy market appeared as the natural first port of call in Audax's internationalization strategy; the many traits in common with the Spanish one and the fact that it was still "immature" from the point of view of the variety of the offer, were elements that made this market interesting in terms of growth potential and penetration possibilities.
In fact, although formally "liberalized", the Portuguese market effectively maintained the typical characteristics of a "closed" space, with the presence of a few subjects - well consolidated in the territory and with strong income positions - controlling almost all of it and with a regulatory framework still rather rigid, albeit transparent in its management.
Considering the perimeter in which to move, the challenge launched by Audax could not be placed on a strictly numerical level, of the "quantity" of users to acquire or "snatch" from the competition - it would have been a difficult tactic to sustain in terms of resources to be invested and efforts required - as on the type of offers and the method of proposing them to customers.
It is therefore to be found in the alternative approach, capable of modifying patterns rigidified by decades of monopoly positions, the innovative energy of the action of Catalan society. Compared to traditional solutions, Audax presented itself with new commercial proposals, flexible at competitive prices, to which a series of integrated or related services has been added, where elements previously poorly considered by the "big companies" stand out, such as environmental sustainability - with the sale of energy from renewable sources - and more personalized customer care and careful.
Audax was one of the first companies to offer "indexed" energy, that is, with tariffs that are based on changes in the wholesale market (and therefore with the possibility of taking advantage of them in the event of a drop in prices) and which can within them include forms of promotions and discounts depending on the commercial policies of the company offering them. Similarly, again with a view to alternative and innovative commercial offers - which traditional companies were still struggling to offer - energy efficiency and exploitation of photovoltaic solar energy services were introduced.
Today, after 5 years, Audax Portugal provides energy (gas and electricity) to more than 8 thousand customers, for a total power of 750 thousand MW. The interesting fact is that the 70% user base is made up of companies that have chosen Audax above all for its flexible approach; this means the opportunity to negotiate an energy price that is as compliant as possible with the company's production needs. And not only for large companies, but also for medium-small businesses.
Looking at the Portuguese market in general, we note how the retail customer is a) increasingly attracted - and also accustomed - to the numerous offers that the aforementioned progressive commercial opening is creating and b) aware of being able to choose from a range of proposals and integrated services where the energy component - now a commodity – is just part of the offering. The biggest obstacle, as happens almost everywhere, is managing to gain their trust and, perhaps first, their attention, especially when faced with rather high wholesale energy prices which do not allow the sales companies to lower their prices. rates.
The behavior of Portuguese consumers, therefore, it can essentially be divided into two large types. On the one hand, there are those who are reluctant to change and remain essentially loyal to the energy company, regardless of the offers. On the other hand, there are those who, having understood the opportunities of a competitive market, look for the increasingly advantageous offer; although it is a clientele whose "loyalty" is low, it becomes the main fishing basin from which the sales companies draw. By focusing attention on this second group, we arrive at a further differentiation between those who decide to negotiate the price directly with the sales company (looking for a contract that is as customized as possible) and those who rely on intermediaries or agencies. As happens in other markets, the determining factors are the price of energy and the customer care service.
Ultimately - excluding the tariff motive, which is sometimes difficult to intervene on - the most effective lever to counteract the "switching rate" towards other suppliers is the proposal of innovative formulas and the integration of services aggregated to the sole sale of the energy component.
Currently, the new frontier of Audax offers for the Portuguese market it provides a mix between fixed and indexed price tariffs, in which the customer himself can choose in which months of the year he wants the tariff to be fixed and in which it is indexed. In this way each user can manage energy spending in a strategic manner, deciding according to their needs and consumption forecasts. But not only. Renewables, especially solar photovoltaic, give rise to a new way of understanding energy, with self-consumption as a widespread system for obtaining clean electricity at lower costs. For those who have a suitable (i.e. sunny) surface on which to install photovoltaic modules but do not want to invest money in their purchase and installation, a new formula for use is proposed. In practice, Audax will bear the costs in exchange for the concession of the space by the owner-customers who, consequently, will be able to benefit from a significant discount on the bill.
And the future objectives - in line with those of the Group - are to provide services with increasingly greater added value, at competitive and environmentally sustainable prices. The investments made in renewables and in particular in solar photovoltaic are moving in this direction. Two important projects, recently inaugurated, which concern the purchase and marketing of clean energy for the Portuguese and Spanish markets, bear witness to this. The twenty-year agreement signed by the parent company Audax Renovables for the purchase and sale, at a fixed price, of the energy generated by the photovoltaic plants of Solara 4 and Ourika - located in Portugal - and those still in the planning phase dates back to January this year. The contract - a Purchase Power Agreement - stipulated with the Irish WElink and Alianz will involve, at full capacity, 708 MW of installed power.
