Miguel Stilwell de Andrade
What is your assessment of 2017? What were the major challenges?
Portugal Commercial Area Regarding the commercial area, in a year that was marked by a demanding regulatory environment and growing competition in the residential segment, EDP was able to use a customer-focused strategy to maintain its leadership in the residential market, with the Portuguese free market having four million electricity customers, 650,000 natural gas customers and more than 650,000 service customers. EDP Comercial (EDPC) has diversified its range in recent years and now has a portfolio of innovative solutions, such as combined energy and service plans, energy efficiency solutions, and electric mobility offers. Energia Solar EDP, with a market share of 75% in 2017, is a market leader, while the Funciona service, which enhanced its value with the introduction of a lighting audit, had 300,000 customers at the end of the year.
In the Large Customers segment, we enhanced our full energy supplier positioning, with investment in the expansion of the energy services portfolio to present innovative solutions for saving energy, generating power, and managing consumption. In the state sector, the largest ECO.AP model energy efficiency contract in Portugal was signed with Valongo municipality, which will see the replacement of 16,000 streetlights in a contract worth €6.4 million. The rate of retention of small- and medium-enterprise customers in 2017 was more than 80%, ensuring adequate margins. The Save to Compete programme ended after five years with more than €60 million worth of energy optimisation projects. EDPC again received a number of awards, including from the ESCI – National Customer Satisfaction Index, Consumer Choice and Cinco Estrelas. Spain 2017 was a very good year across different business areas (generation, electricity and gas distribution, and the commercial area) in Spain, with the unique and successful sale of the gas distribution business. The year saw an increase in the demand for electricity and gas for the third year running; strong recovery in the demand for residual heat because of the low rainfall; highly volatile pool prices that are higher than the previous year; a significant increase in the price of fossil fuel prices, especially coal; increased competition in the commercial area; the elimination of the annual deficit tariff and, consequently, a more stable and predictable regulatory framework; maintenance of the negative impact of taxes and fees on generation. Power generation in Spain remained focused on the availability and flexibility of our power plants, which are becoming increasingly important in a volatile market. Moreover, we note that the deNOx environmental investments at the Aboño 2 and Soto 3 power plants were complete within timescales and budget. Electricity distribution enjoyed its best year in terms of the quality of technical service (20 minutes – Installed Capacity Equivalent Interruption Time (TIEPI)), still the best in Spain. Clearly, we are in the new paradigm for smart grids in Spain. Almost 100% of customers had smart meters at the end of the year, with high readability rates and work order executions. In 2017, the company exceeded 2.4 million in sales of dual fuel services and had around 600,000 Funciona customers by the end of the year. Our B2C customers rated us the best electricity supplier for customer satisfaction, according to the STIGA index. In B2B we have retained efficient generation coverage and optimisation of our customer portfolio.