A new era as ESB enters gas market
ESB has experienced many changes as an organisation since the 1920s but Tuesday, August 14th and Friday, September 11th 2009 will be noted in ESB's recent history as a significant milestone. In August, the competitive retail business arm, ESB Independent Energy (ESBIE), was granted a gas supply license by the Commission for Energy Regulation (CER) and less than a month later, on September 11 it signed its first gas customer. For ESB this represents a major step in its history, as noted by Chief Executive, Padraig McManus, following the announcement that ESB had entered the retail gas market.
A joint working group from the ESBI GTS (Generation Trading and Supply) Business (ESBIE and ESBIG) under the direction of project director Derek Russell, a project board and steering committee, along with input from several key stakeholders, pulled out all the stops to deliver this ambitious project in less than four months
Having selected several key target customers within its existing customer base, the commercial team weighed in fully behind the project to win the first of many gas customers. Michael McNicholas, Executive Director, ESBI complimenting everyone involved remarked, "This was an extremely challenging project with extremely tight deadlines requiring hard work, dedication and commitment. I am greatly encouraged by, and extremely proud of, everyone involved and their achievements. It is further evidence that ESBI can be extremely flexible and innovative, and continue to show growth within the ESB Group."
ESB is already the largest gas user on the island of Ireland and will source gas to supply its retail gas customers through existing and well established channels. The trading team within ESBI's Generation Trading and Supply business brings vast experience to this enterprise, having traded gas since 2004 on behalf of ESB Coolkeeragh, an experience and expertise that will greatly benefit customers.
Having been granted a gas supply license by CER, ESBIE was quick to secure contracts with two major manufacturing companies - Ferrero Ireland Ltd. in Cork is ESB's first gas customer.
Ferrero Ireland is already an electricity customer of ESBIE and M. Jorris Gamelin, Managing Director, Ferrero Ireland Ltd stated that "We are pleased that our relationship with ESBIE has delivered value and high service levels for our electricity needs over many years. Therefore, we are glad to place our gas business with ESBIE because we are confident that these benefits will also apply to our gas supply."
Initially ESBIE will target large industrial and commercial gas customers and has targeted to take a 20% share of this market within three years. Liam Molloy, Managing Director ESBIE and Emerging Businesses, says; "Less than one third of the retail gas volumes in the commercial sector have switched supplier since the gas market opened in 2002 so the potential for ESBIE is obvious. With more and more customers requiring energy solutions that include a duel fuel offering, we are well positioned to take full advantage of our unique skills and expertise to achieve our ambitious targets."
Through meeting their electricity needs ESBIE has already excellent supplier customer relationships with many large gas users. In its short 10 year history ESBIE has established itself as an energy supplier renowned for extremely competitive prices backed by first class customer service. This is something that management and staff in ESBIE are very proud of and drives them to continuously challenge for constant service improvements.
A feature of the ESBIE retail gas product offering is that it will allow customers increased flexibility and also greater control over their gas costs. ESBIE's online electronic billing information system "EBIS Extra" has been upgraded and now has current gas prices published on it daily. This information helps customers to calculate the optimum gas deal for them.
2010 will continue to be an interesting year for the ESBI GTS Business as it expands its customer base for gas.
