Eesti Energia has begun selling electricity to household consumers in Latvia, marking the Estonian energy group's fourth market for private consumers following Estonia, Finland and Sweden.
The Estonian energy company has been operating under the Enefit brand on the Latvian corporate market since 2006 and has achieved second place in the corporate market selling both electricity and gas, the company said in a press release on Tuesday.
Eesti Energia Group Chief Customer Officer (CCO) Jüri Teemant said that Enefit is already a recognised brand in Latvia, and the company is now taking things a step further.
"Hundreds of contracts signed during a short test sale demonstrate that our offer is attractive and competitive," Mr Teemant said. "We are a serious alternative to [Latvia's] Latvenergo currently dominating the market, which still commands 92% of the market share of domestic customers."
In the long term, he added, Eesti Energia's goal in Latvia is to achieve a 10% market share and generate real competition.
According to a recent Norstat survey, one third of Latvian households are unsatisfied with their current electricity seller, and 45% consider switching their electricity seller once a year. Yet only 6% of Latvian households actually switch their electricity seller during the year, primarily due to the lack of good alternatives, Eesti Energia said.
Enefit is promising customers in Latvia transparent pricing without any additional or hidden fees, as well as a choice between a fixed-price package and a dynamic package pegged to market prices.
Enefit will also be the first electricity seller in Latvia to offer green energy, solar panel installation and financing, electrical appliance insurance, and a mobile app for customers.
Expansion continues in Baltic Sea region
"Our competitive advantage in new home markets is also a digital platform that has been tested out in Estonia and can also be used in other countries where consumption data has been made available to service providers," Mr Teemant highlighted.
Eesti Energia currently operates as an energy seller in Estonia, Latvia, Lithuania, Poland, Finland and Sweden. Entering the Latvian household market is part of the company's strategic goal to grow from Baltic electricity seller to the Baltic Sea region's energy seller and energy service provider.
Editor: Aili Vahtla