Dive Summary:
- In the wake of power outages such as those caused by Hurricane Sandy, experts say consumers in deregulated states may seek out new electricity suppliers, even though their electricity will still be distributed through the same power lines.
- While many consumers believe that switching suppliers will reduce costs, utility experts argue that the amount saved will almost always be minimal, service will likely not improve and switching and return fees will increase cost every time the consumer chooses to switch.
- Despite deregulation, 50 of the biggest power companies still take in 85% of the total $120 billion in revenue, according to First Research.
From the article:
"After Superstorm Sandy, many people are probably thinking that it would be nice to change their electricity supplier. But can you really save money and get better service that way?
The hypothesis behind alternate electric companies was that competition would drive down prices. But there have been growing pains since the late 1990s when the federal government set out to deregulate electricity. ..."