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06.08.2021

Top 50: DiXi Group presents the pilot version of the Ranking of Gas Suppliers

On 23 July, DiXi Group presented the pilot version of the Ranking of Gas Suppliers, prepared within the USAID Energy Sector Transparency project.

Ranking’s pilot version features the top 50 gas suppliers. The sample containing the 50 largest suppliers represents almost 70% of the retail gas market among over 800 active NEURC licensees. These companies were rated on the basis of 21 indicators in four major categories:

  • online services
  • commercial offers
  • consumer awareness
  • transparency and business activity

This Ranking is aimed mainly at two target audiences: suppliers and consumers. Consumers receive access to evaluations of online services, commercial offers, transparency and business activity of leading gas supply companies. Therefore, the Ranking helps them select the best supplier while saving time and money.

As for suppliers, regular updates of this Ranking are aimed to create a healthy competitive environment among them. The access to evaluations of their competitors’ performance will raise awareness of the best market practices and help suppliers improve their commercial activity with an orientation toward consumer needs.

This Ranking is a regular product. Suppliers will be evaluated every six months based on data provided by NEURC.

It is worth noting that it took almost a year to get from the idea to create such Ranking to the presentation of its pilot version. The reason for that, DiXi Group President Olena Pavlenko said during her speech, was restricted access to data: “Despite our desire to launch this rating in the gas sector [during this time, DiXi Group has already presented the pilot and the first issues of the rating of electricity suppliers in 2021 ], we weren’t able to do it for almost a year. The reason was simple: we could not obtain the data we needed. Whatever could be freely obtained as information about the electricity market was classified as commercially sensitive information in the gas sector. We were denied access to certain data, and whatever information we eventually were able to gather was utilized to the fullest possible extent to compile our Ranking of gas suppliers.”

Bohdan Serebrennikov, DiXi Group Analytical Services Manager, pointed out that the Ranking of gas suppliers must be perceived as an instrument allowing to regularly evaluate the performance of companies based on a set of indicators and monitor the progress of market participants. The Ranking does not offer price comparisons – for that purpose, there is another instrument, Gasotheque service, which has been available for almost a year to date. He also said that the use of these two instruments gives consumers more confidence in the market and allows them to make more prudent decisions.

Speaking about the Ranking’s results, they indicated that the retail gas market still remains immature.

“The Ranking’s low average score [0.240 out of the maximum possible 1 point – editor’s note] proves that the retail gas market remains quite immature and is yet to come of age. One of the reasons for that is the relatively recent liberalization of the segment of gas supply to households. It also indicates that the companies have utilized their potential by as little as a quarter,” Bohdan Serebrennikov said.

In turn, the Energy Advisor at USAID Ukraine Economic Development Office, Ashley King, hopes that this Ranking will help gas suppliers become more efficient and consumers more active.

“During 2020, more than 500 thousand household and almost 1400 non-household consumers changed their gas suppliers,” Ashley King said. “It’s a good signal. But at this stage, suppliers must be prompted to become more efficient and consumers more active in this respect. We will be happy if the rating of gas suppliers helps achieve these goals.”

Oksana Kryvenko, ex-member of the NEURC, pointed out that this Ranking is very important, first of all, for consumers, because it allows them to faster navigate the nascent gas market: “I hope that ratings like this will help advance toward the greater openness of the market and allow for a more dynamic change of supplier thanks to the criteria used for ranking purposes. For suppliers, these rankings will be very useful as well, because they will serve for them as a sort of a stimulus and a “benchmark” they could use to follow examples of the best companies and become better themselves, which also must benefit the consumer in terms of both the quality of service and the pricing policy.”

Yevhen Natsvin-Stepanov, Deputy Chairman of the Board of the Association of Energy Suppliers, said that his Association would be happy to participate in the preparation of the future issues of this Ranking, because “it’s indeed a very useful instrument for the domestic market.” He also added that it would be very helpful if the next ranking accommodates the opinion of consumers about the importance for them of a particular criterion used to evaluate gas suppliers.

It is worth reminding that the next issue of the Ranking of gas suppliers is slated for release in late January – early February 2022.

Detailed, systemized information about evaluation of the top 50 gas suppliers based on the Ranking indicators is available on order (author@dixigroup.org).
Download the pilot version of the Ranking of Gas Suppliers 2021 (in Ukrainian)

The event was held within the USAID Energy Sector Transparency Project implemented by DiXi Group NGO. The publication of the Rating of Electricity Suppliers was made possible with the support of the American people through the United States Agency for International Development (USAID).
Information contained in this research is the sole responsibility of DiXi Group and do not necessarily reflect the views of USAID or the United States Government.

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Our platforms

https://ksep.energy/en/

Independent energy educational center

http://eiti.org.ua/

National website of Extractive Industries Transparensy Initiative in Ukraine 

http://ua-energy.org/

Information and analitical website “Ukrainian Energy UA-Energy.org” is unique   platform to inform