Customers Exhibit a strong desire to have choice in deregulated electricity markets

by jsgs45 on November 16, 2010

Electricity Service CompetitionA study was done by COMPETE Coalition to determine the effect electricity deregulation has had on energy consumers and what has been shown is a strong desire to choose and switch electric companies.

Comparison of Electricity Company Prices

Rather than going with a monopoly electric provider which only offer one or two rate plans commercial and industrial businesses can choose advanced ways to save money on their electricity account.

Residential customers also are more likely to switch from the monopoly electric company than to just stay with status quo. As of 2003 electricity sales from retail electricity companies has doubled.

With deregulated markets new resources and tools become available to large commercial and industrial customers that enables them to see trending prices and set targets in order to manage risk and have price predictability.

These tools give US companies the ability to show how an advanced energy management strategy that strategically locks in electricity prices over the course of 1 or 2 years can dramatically lower a businesses largest overhead cost, electricity service.

If states like Texas, New York, New Jersey, Maryland, and Pennsylvania had chosen to not deregulate their electric utility markets there would not be the electricity plans available that can be tailor fitted to a certain type of electricity usage account.

The type of forecasting tools and proposal reports would also be lacking and behind in technology in regards to the type of data reporting we have now to show commercial energy customers.

What has been seen in some of these deregulated electricity markets from the positive aspects of deregulation are the following:

Competitive electricity markets improve the wholesale energy business.

A higher level of efficiency is achieved from the competitive nature of a free economy and deregulation.

More customized electricity rate plans become available as providers find ways to differentiate themselves from their competitors providing more choice to customers.

Customers in deregulated markets whether they be residential or commercial are compelled to switch to an alternate supplier when offered the choice in a deregulated energy market.

The COMPETE coalition represents over 515 electricity companies, suppliers, and providers in deregulated electric utility markets in the US.

A Partial Membership list of the COMPETE Coalition

Electricity Service

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