E-commerce in electricity saves consumers 4.3 billion TL

The electricity market began to move as of October. However, due to rising prices, consumers continue to look for more affordable electricity. The easiest and quickest way to do this is to switch to more affordable tariffs by changing suppliers. According to the information provided by the electricity tariff comparison website EnCazip, changing electricity suppliers online in Turkey means an additional saving of 4 billion 367 million TL for more than 36 million home consumers.

By changing the electricity supplier, it is possible to switch to more favorable tariffs and make savings. The change of electricity supplier, which has become a habit that will closely concern new consumers in our country and is expected to become much more widespread in the short term, is also on the agenda in European countries.In the UK, which has about half the number of meters in Turkey, 5.8 million home users changed their electricity suppliers last year. When we look at the changes in electricity suppliers in the world, it is seen that the highest supplier change rate is in Portugal. Portugal is followed by countries such as Norway, Ireland, the United Kingdom, Belgium and the Netherlands. The countries where the change of suppliers is least common are Bulgaria and Romania.

124 TL savings thanks to distance contracts

In fact, electricity suppliers can be changed in Turkey for 18 years, but previously this right was only given to consumers with very high consumption. With the amendment of the regulation made by the Energy Market Regulatory Authority (EMRA) in November 2018 for the supplier exchange that could previously be done with wet signatures, the obligation to obtain these contracts with wet signatures was eliminated and with the permission of EMRA, the supplier change sector was opened to distance contracts, therefore to e-commerce. Thus, users saved 124 TL in courier/cargo and paperwork costs and saved time. The contract process, which was completed in an average of 11 days before moving to distance contracts, can now be concluded in minutes.

TL 4.3 billion additional savings for consumers

More than 20 million consumers in Turkey are in a position to change their electricity suppliers. The number of consumers who have changed suppliers in recent years has approached 5 million. The situations experienced in 2018 reduced this number to 100 thousand. The movement in the market accelerated especially in October and the increase in supplier change applications attracted attention. This point, which has been reached in 18 years, will change in the coming periods with the opening of the way for distance contracts and the right to change suppliers to consumers who pay much less bill. For over 36 million home consumers, the elimination of costs due to shipping and wet signed contracts alone means an additional saving of 4 billion 367 million TL, and the savings to be made with cheaper tariffs are completely outside this figure.

The size of the online supplier exchange market is TL 5.5 billion

Çağada Kırım, founder of electricity tariff comparison website EnCazip, says that the approximate annual potential size of the current electricity supplier comparison/replacement market is 5.5 billion TL: "This is a market size that makes investors appetite. However, the most important point in this market is the fact that the company that makes the most money will be the company that makes the consumer smile the most. Here's how the business model works in comparison agents: First, the consumer enters the site and compares the suppliers in the market. If he thinks a supplier is benefiting him, he decides to move on to that supplier later. At the end of this, after the transition is completed, commissions are taken from the intermediary suppliers. So first the consumer, then the comparison site laughs. Therefore, our priority is for consumers to get the maximum benefit from electricity suppliers at minimum prices. The market and potential in the field of comparison is huge, and seeing this, many global companies have started to invest in the field of comparison to serve different sectors."

How is the supplier changed?

In EnTemptation, the consumer who wants to change suppliers writes the current electricity bill amount, then the comparison table is shown to the consumer. From here, the consumer chooses the most attractive tariff (not always the cheapest, but also by evaluating other tariff conditions) and then accepts the supplier's distance sales contract, establishes a contract with the supplier and starts the change process. Consumers have the right to withdraw within 14 days. This way, there is no need to do anything else for the supplier change process. Between 25 and 50 days (according to the application time), the supplier change process is completed.

About EnAttractive

Founded in 2013, EnCazip is a free, unbiased comparison and online electricity supplier exchange service. EnCazip, which enables consumers to find the most attractive electricity supplier by comparing the tariffs of electricity suppliers in seconds with accurate information and up-to-date data, allows easy supplier change transactions. Founded by Çağada Kırım and Onur Orakçıoğlu, the company's partners include Attractive Energy Holdings Limited UK, which consists of London-based investors.