Need for New Business Strategies for Driving Value in a Liberalised Electric Power Market

K. Johnsen (Denmark)

Keywords

Socioeconomic, power market regulation and deregulation, business strategies, electric power business,

Abstract

The European electricity markets are being liberalized in these years. Even though competition within the electric power business in many countries is a relatively new thing, most consider the electric power business as a mature business. The usual business strategy for a mature business is to to go for the cost-leadership. But there is a way around the maturity: Differentiating the electric power as a product, by focusing on the demand for different power qualities. But isn't it "risky business" to believe that customers are willing to pay for power quality? The paper analyses the strategic position at the electric power business, analyses the two different strategies and motivates that power quality is a potential value driver for both the electric power business and its customers.

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