I’m a bit behind on the release of this article, as I’ve seen it linked on a couple of other blog sites for specific retail electricity providers (for obvious reasons), but it’s important enough to warrant blogging about here as well. The article basically summarizes a survey that supports the idea that the cost of Retail Electricity Providers (providers in competitive markets like Houston, Dallas, and Corpus Christi) are offering lower electric rates than Co-Ops or providers in areas that exist without competition.
The gist of the article is simple, saying that survey results are showing that the rates customers can get now from their REPs are less expensive than many of the rates that people can get from Co-Ops are areas that are still regulated. Personally, I think this is great news, and I’ll address why I believe that now. First, is the obvious reason, which is that the rates of deregulated markets are just getting lower and coming down to be equal to areas where there isn’t choice in your electric companies. I don’t think we need to address the obvious reason here, which is that lower prices for Texas electricity. Now, the deregulated market model has taken loads and loads of criticism from both customers in Texans as well as other states across the country, but if all of the prices are even close to equal, then deregulation wins as the superior model. Why, you ask? Well, because is the prices are all similar, then Texas customers in these markets can choose providers based on other things, like contract terms, or more importantly, customer service. If they have a bad experience they can go elsewhere to choose their electricity provider. That’s an option of choice that other people simply don’t have, and it forces the companies in deregulated markets to strive to be better and do right by their customers, as opposed to act indifferently because consumers have no other choice but to come to them for electricity. Of course, the caveat here is that the prices will remain someone consistently similar to the rates of regulated areas.
Now, another reason I like this article is it is yet another example of the increasing awareness of the deregulated marketplace in Texas, how it works, and that people are becoming aware of how the model and system works. We’ve discussed this before in previous blog posts here, and I will continue to trumpet that it is a great thing that people are becoming more and more aware of the system, how it works, and most importantly, how to make it work for them. The more articles we see like this continue to reflect the increase with which this is hitting the consciousness of Texans looking to shop for electricity.
What do you guys think?