FRESH ENERGY
FOR ITALIANS
Our Market
Edison operates in every segment of the energy industry, from production to distribution and marketing. The Group operates in the deregulated market through Edison Energia (Edison’s wholly owned subsidiary), which sells electric power, natural gas and related services to end customers in the deregulated market.
Edison’s market strategy is to offer customers both electric power and natural gas through customized plans that include innovative services tailored to meet the requirements of each consumer, while at the same time emphasizing respect for the environment through the production of clean energy and the promotion of energy conservation.
In 2006, sales of electric power totaled 65,400 GWh, or 24% more than in the previous year. Deliveries of natural gas again exceeded 13.6 billion cubic meters (including intra-Group sales).
Edison Energia’s direct sales force serves 2,200 industrial customers in the Business segment (consumption >1 GWh) and provides consulting support to the production activities. Because of this function, it was recently reorganized by industrial sector. In the Microbusiness segment (consumption <1 GWh), which had a portfolio of 16,000 customers at December 31, 2006 and expects to expand to 27,000 by the end of 2007, Edison operates through an extensive network of sales agencies (their number increased from 28 to 52 in 2006) that are present throughout Italy. In our work with these agencies, whose internal processes we have already helped to improve, we invest annually in training and services.
In the residential market for natural gas, the Group operates through Edison Per Voi, which has a portfolio of 168,000 customers.
Edison has also established joint ventures with former municipal gas utilities: Blumet in the Emilia region, Eta3 in Tuscany and the province of Perugia, and Prometeo in the Marche region.
Edison’s focus on its customers resulted in the development of multiple contract formulas that address the complex needs of different types of customers, based on their consumption profile, need to plan a steady level of cost or, on the contrary, acceptance of greater risk and willingness to anticipate changes in the international fuel markets. Lastly, two important initiatives were launched at the end of 2006: a quality project, which is aimed at securing ISO 9001 certification for Edison Energia within the Marketing and Distribution Business Unit and, after conducting tests in 2006 with positive results, development of a Teleselling service for customers and potential customers who want to access energy supply services quickly through a simple telephone contact, without sacrificing efficiency or the transparency of the offer and contractual conditions.
Services for Intelligent Energy Consumption
One of Edison’s goals is to help its customers achieve a structural reduction in the amount of energy they use, which it pursues through the delivery of services with a high value added. These services range from intelligent, transparent and concise reports to monitor consumption to the Energy Check service, which performs a rigorous diagnosis of the equipment used by customers and helps them plan the actions needed to optimize consumption and reduce costs.
Projects completed in the natural gas area in 2006 included developing the Services Chart and activating the Gas Data Monitor Service to control consumption. Between 2005 and 2006, Edison provided Energy Check and Simplified Energy Check services at 130 customer locations. Customers continue to respond positively to the online services that are available in the protected section of the www.edisonenergia.it website because they address the diverse characteristics and needs of individual businesses. In 2006, Consumption on the Web was used by more than 480 customers and Energy Data Monitor by more than 127 production facilities.
Sustainable Supply
Like all operators in the electric power industry, the Group is required by law to use renewable sources to generate a percentage of the energy it produces. Edison, however, has exceeded the requirements of industry regulations and plays an active part in developing and promoting green energy projects.
In 2005, in pursuit of this goal, we launched ECODOC – Electric Power from Nature, a special brand that certifies the purchase of electric power produced entirely from renewable sources. Among the various renewable sources that exist in nature or are designated as such under the incentives provided by industry regulations, the ECODOC brand covers only wind power and hydroelectric generation.
This brand, which is the property of Edison, is made available free of charge to customers who, due to their strong commitment to the environment, choose to meet 100% of their energy needs using energy produced from clean sources and agree to sign a Green Idea or Green Option supply contract (offered to small and medium-to-large users, respectively).
The ECODOC brand is based on the RECS International certification system, under which the source of electric power produced from renewable sources is certified by an independent third party that is recognized at the European level. As a guarantee that the energy being purchased is green, customers receive a certification issued by RECS International with their electric bill.
Under the usage regulations, customers are allowed to affix the ECODOC logo on their advertising material and product packaging, thus emphasizing and proclaiming their environmental commitment and contributing to increasing awareness of environmental issues. ECODOC sales increased from 5 GWh in 2005 to 17.9 GWh in 2006.
Edison’s training programs are also focused on energy conservation and consumption optimization. A particularly noteworthy project carried out in 2006 was the second seminar for Energy Managers of hospitals within the Lombardy Consortium. This event, which was attended by about 50 customers, was held at the Group’s Milan headquarters.
Customer Management System
Edison operates a Customer Relationship Management (CRM) system that uses a broad array of channels to communicate with its customers. A new CRM project, the development of which began in 2005 and will be completed in 2007, will result in the establishment of a true service supply center that will manage relations with all of Edison’s customers, whether they are served directly or indirectly through partners.
The portion of this project that concerns the management of customers in the Microbusiness market segment was completed in 2006. In 2006, the existing CRM system served a total of 9,000 Edison Energia customers and 165,000 EdisonPerVoi customers. The Contact Center fielded a total of 138,000 incoming calls, providing a level of service of 80.4% (calls answered within 30 seconds). The Center also placed 162,000 outgoing calls, which were made mainly in connection with Teleselling programs and other sales solicitations.
Fine Imposed by the Authority
Upon the conclusion of an investigation launched in February to determine whether certain sellers of natural gas inappropriately used the modulation storage capacities allocated for the 2004-2005 and 2005-2006 thermal years, the Electric Power and Gas Authority imposed administrative fines on five companies, including Edison Spa. While Edison challenged this decision, it established a separate provision for risks for the full amount of the fine (20 million euros).