Powergen, the UK’s largest electricity supplier to the business sector, will take the brand name of its German owner E.On. It says this will help the company to tap into a powerful pan-European brand and overcome its electricity-only image.
With the UK set to become a net importer of gas in the next few years, and the growing role of gas in the country’s energy sector, this is set to boost E.On Energy’s (as Powergen’s business will now be known) competitive positioning. By dropping “power” from its name (except for its mass-market and small business customers), the company will try to win a similar position in gas to that it enjoys in electricity.
As far as price is concerned, E.On Energy will now be able to draw fully on the parent company’s trading and risk-management expertise, keeping price levels in line with the market trends and offering pricing formulas that are flexible enough to meet the diversity of customer requirements.
The company should also be able to offer improved multi-fuel and added-value offerings. A city analyst said the question that many will be asking is whether the change of brand will have repercussions for the company’s customer retention rates.