MARKETING MIX MODELS USED IN THE LIBERALIZED HOUSEHOLD ELECTRICITY MARKET

Abstract

The retail electricity market in Romania has been liberalized for household consumers since 2013, allowing households to switch electricity suppliers based on price or any other preferences. The implementation of legislation and institutions compatible with those set up throughout the European Union has provided support for the development of a liberalized market. However, available data suggests that consumers only started switching in 2017, with approximately 2.5% of households having done so by the end of 2018 – a relatively rapid growth compared to other European states. This promising trend in Romania has encouraged electricity suppliers to develop a more consumer-friendly array of service offerings, with various pricing options, as well as other bundling benefits. Their marketing strategy has also involved developing promotional campaigns along with networks of customer contact points across the country. The current paper explores, classifies and compares the marketing strategies of the household electricity suppliers in Romania, based on the examples of electricity suppliers active in other countries. The aim of the paper is to show to what extent the marketing strategies observed in other countries have been successfully replicated in Romania and whether significant adaptation is required in order to meet the expectations and satisfy the needs of the local household consumer segment.

Keywords

• electricity suppliers;
• retail electricity market