Eni takeover: what are the consequences for customers?

Eni Gas & Power, the Belgian subsidiary of the Italian supplier, has been bought by the Dutch energy supplier Eneco. What does this transaction imply?

Mergers and takeovers were in the air! After Lampiris was bought by TOTAL, the finalization of the purchase of the supplier Eni should be ratified as soon as the approval is given by the authorities. A rumour, dating back several months, concerned the desire of the Italian parent company to split from its Belgian subsidiary.

Just to recap, Eni arrived in 2011 as a result of the acquisition of Nuon. Since then, it has always sought to dethrone EDF Luminus to second place on the podium of energy suppliers with the largest number of customers in the Belgian market. Eni would never achieve this. This transaction might shake up the hierarchy in place since the liberalization of the Belgian energy market.

Just a few days after the announcement of the arrival of Eni on French soil as a supplier of electricity to private individuals, it withdrew from the Belgian market. Major strategic changes, then, for the Italian company.

What is Eneco?

Eneco has been present on the Belgian market since 2011. It supplies 100% green electricity and gas to more than 300,000 residential customers, 25,000 SMEs and 11,000 industrial customers.

Based in Malines, the head office of the Belgian subsidiary of this Dutch provider currently has more than 200 employees.

According to the latest figures published, Eneco is one of the suppliers to benefit from one of the biggest improvements in terms of customer acquisition from March to December 2016 in Flanders. Indeed, it went from 3.9% to 4.3% of market share in this period. It sets a milestone to complete this progression thus allowing it to exceed the symbolic mark of 1 million customers on Belgian soil.

Indeed, Eneco, a highly appreciated supplier by consumers, advocating renewable electricity, would hypothetically become the third actor in the Belgian energy market behind Engie Electrabel and EDF Luminus.

Eneco would also become the best ranked supplier by Greenpeace of the leading trio, with a score of 18/20 according to the latest ranking.

In addition to being a supplier, Eneco is also a major producer of electricity in the market. With its 86 wind turbines and its 250,000 solar panels, it is clearly positioned as a supplier for the future in this period where we hear more and more about energy transition.

A takeover with what effect(s) on customers?

Would customers do better to join another energy supplier? According to the communication received from two suppliers, here are the first data received:

1. For Eneco customers: no change in the immediate future, neither at contractual nor at service level.
2. For Eni customers: no change in the immediate future, the effects of this kind of takeover only become visible to the consumer in the months following its formalization, such changes taking some time to be implemented.

Details about the financial figures of this operation have yet to be published by the parties.