30 Jan 2018
- The energy company enters the residential electricity market, and becomes the only firm in Spain to bring together the three services in one package called Cepsa Hogar
- The project is part of the company's expansion plan, using new business formulas to provide energy adapted to the needs of every customer
- The Company’s goal is to become one of the four main electricity operators
- In addition to a competitive electricity and gas package, Cepsa offers up to an 8% additional fuel discount besides existing loyalty programs
Cepsa has strengthened its product offering as part of its expansion plans through the launch of Cepsa Hogar, making it the only company in Spain to offer natural gas, electricity and fuel all in one package to consumers.
The launch sees the company move into the residential electricity market to offer its customers dual supply (electricity and gas), and fuel supply from its Service Stations.
Through the combination of the three services (electricity, gas and fuel), Cepsa offers a competitive gas and electricity package, and up to an 8% additional fuel discount for consumption at its Service Stations, linked to its ‘Porque TU Vuelves’ loyalty program, which is in addition to the 6% discount offered on the Cepsa Visa Porque TU Vuelves Card and the 4% percent discount from the Carrefour savings check.
Cepsa Hogar offers three types of rate, depending on the needs of each consumer: Fixed rate, which means the customer pays the same every month; Flexible rate, in which the consumer pays for each month's consumption with the same energy price all year round; and Optimal rate, which allows the user to pay for energy at cost price every month, plus management costs.
Speaking at the presentation of Cepsa Hogar, Álvaro Díaz Bild, Cepsa's Commercial Director, said: "What truly makes the Cepsa Hogar package different is that by combining gas, electricity and fuel it allows us to offer a competitive offer in gas and electricity and with fuels discounts of up to 18% (8+6+4). At Cepsa we seek to offer all the energy solutions that are customers need.”
The project forms part of Cepsa's new commercial strategy, aligned with the road map established in the Cepsa Energy Outlook 2030 report, a company research project showing how the energy map of the future will look like. According to the report, electricity, which represents a quarter of Spanish energy demand, will support the expansion of renewable energy sources, and by 2030 Spain will obtain 60% of its mix of electricity generation from renewable sources.
The goal of Cepsa Hogar is to place the company within the top four operators in the residential gas and electricity markets in Spain.
Cepsa and the gas market
In Spain, average natural gas consumption per household per year is around 9 MWh. It is a product that is being used increasingly as more and more homes adopt this energy. According to the latest data, in 2016, gas consumption increased by more than 3% compared with the previous year, with the markets of Catalonia, Andalusia and the region of Valencia standing out, which together account for nearly half of consumption in Spain.
Cepsa has a long history in this sector: In 2000, it led the construction of Medgaz, the first underwater gas pipeline in the Mediterranean, which transports Algerian gas to Europe through Spain. The Company regasifies, transports and distributes natural gas to large industries and is the fifth largest operator in the national natural gas market. The company’s experience of transport and distribution to industrial customers was applied to the domestic market in 2014 when is started to sell natural gas to households.
The energy company is also a pioneer in the production and marketing of liquefied gas (butane and propane), through its network of Service Stations. It has two decades of experience in marketing these products, has more than 100 licensed distributors, 200 storage centers and 4,000 sales points.
In the spring of this year, Cepsa together with its partners (Sonatrach and Total) will launch their first gas production field in Algeria.
Cepsa and the electricity market
Average electricity consumption by Spanish households per year is 4 MWh and data for 2016 showed an average increase of 0.8% compared with the previous year. Navarre, Murcia and Extremadura were the regions with the highest rates of growth in consumption, of around 2.4%, while Catalonia, Andalusia and Madrid are the regions with the highest electricity consumption in the residential market.
Cepsa generates electricity through its eight co-generation plants and a combined cycle plant, which supply its production facilities. In addition, since 2002, the company has marketed electricity generated from renewables’ sources from third parties to use at its installations and other end consumers. Cepsa has recently entered the renewable energy market and, at the end of this year, will start running its first wind farm in Jerez (Cadiz).
Cepsa and Service Stations
Cepsa has a large network of over 1,500 Service Stations in Spain, based on a model of customer focus, innovation, safety and loyalty. At its Service Stations, in addition to marketing quality fuels, the company offers a multitude of products and services (food, hygiene, cleaning, vehicle cleaning, courier service, etc.).