06/09/2020

PARC4U new generation of electricity and gas purchasing

PXE has launched a new web application, PARC4U, which will make it much easier for the public to purchase electricity and gas and to change their supplier.

For the first time in its history, POWER EXCHANGE CENTRAL EUROPE (PXE) will focus on end users among households and tradesmen. PXE will facilitate their electricity and gas purchases using the new PARC4U web-based solution. The app will offer the customer the most suitable offers from leading Czech energy providers without hidden fees. It will also provide the freedom to change the supplier every year with one click of a button without having to communicate, physically or online, with the energy company.

“PXE is responding to numerous requests from people who wanted to buy electricity and gas directly from the exchange. Although the current legislation does not allow us to do so, we have satisfied our customers with a non-exchange service that guarantees transparency of purchase and practical advantages for physical customers and tradesmen,” said Power Exchange Central Europe General Secretary David Kučera.

With the launch of PARC4U, PXE continues its strategy to move all energy trading into a fully electronic and user-friendly environment. For four years now, it has successfully operated the PARC platform, through which cities, municipalities and companies purchase energy. PARC4U is also extending the PXE offer to households and tradesmen, whom it will protect from unfair practices on the market and make it easier for them to navigate the current offer. Currently, six electricity and gas suppliers are involved in the PARC4U system and more than 10 entities covering about 80% of the market in the Czech Republic have announced their interest to be part of it.

“Only a company that already trades in energy on the PXE wholesale market and is thus subject to the exchange's very strict regulation can become a supplier. If a candidate does not meet the criteria, it has no chance to join the system. This way we protect the customer from unfair practices, which have unfortunately multiplied lately,” explains David Kučera.

The PARC4U application also responds to the consumer behaviour of Czech households when purchasing and changing electricity and gas suppliers. According to the results of the PXE survey, more than 56% of Czech households have an electricity or gas supply contract for an indefinite period. And nearly two-fifths of respondents would welcome more favourable contractual terms and conditions, including, for example, the ability to terminate the contract at any time. PARC4U will make it much easier for these customers to change suppliers without unnecessary paperwork and notice periods. At the same time, more than 41% of respondents consider credibility a key criterion for choosing a new electricity or gas supplier.

“PARC4U is a combination of practical benefits for its users and a guarantee of secure energy purchases. We believe that we will appeal to the young generation that buys everything online, as well as to older customers for whom transparency and good prices are key,” concludes David Kučera.

For more information about the PARC4U application, please visit the website www.parc4u.cz

Selected results of the PXE survey (December 2019, representative sample of 1,000 respondents):

For how long have you concluded an energy supply contract?

  • for an indefinite period 56.9% (electricity) 56.3% (gas)
  • for a fixed period of one year 5.1% (electricity) 5.6% (gas)

What prompted you to change your last electricity or gas supplier?

  • trying to save 64.6%
  • dissatisfaction with the supplier 18.0%
  • moving 17.8%
  • offer from a dealer 10.8 %
  • other reason 4.4%
  • I don’t know 0.7%

Based on what would you consider a new supplier? (% yes)

  • price 74.6% (electricity) 75.4% (gas)
  • supplier trustworthiness 45.1% (electricity) 41.7% (gas)
  • more favourable contractual terms and conditions 40.7% (electricity) 35.7% (gas)
  • the supplier takes care of everything for me 30.1% (electricity) 27.5% (gas)
  • according to the internet comparison sites, 13.4% (electricity), 13.4% (gas)
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