Customers like electricity deregulation for more than price

The recent report from the COMPETE Coalition and DNV KEMA Energy & Sustainability found that interest in electricity deregulation has been growing stronger in recent years.

But the report also found that lower electricity rates were not the only reason the residents and businesses had for switching electricity providers.

“Competitive electricity suppliers provide much more than a comparatively attractive price,” William Massey, counsel to COMPETE. “They are working with their customers to design contractual terms, information, innovative products and portfolio pricing to match the individual needs of customers.”

The different benefits of retail electricity providers are a crucial selling point for electricity deregulation, since some opponents have argued the policy will only work at odd times, like when fuel prices drop as has happened with natural gas over the past few years. The evidence from this report suggests that the differing types of electricity rates appeal to customers aside from price, however.

“While some resistance remains to customer choice, opponents of retail electric choice now rarely argue for rolling back choice in the 18 competitive jurisdictions, as any such efforts would be strongly opposed by the many satisfied shopping customers,” the report states.