50 Percent Will Switch Electricity Providers for a Discount
With electric deregulation taking hold in various states around the country, findings from a recent survey conducted by the Yankee Group (a subsidiary of Primark Corp.) indicate that more than half of United States` consumers would be willing to switch electric companies if offered a 10 to 15 percent discount from an alternative supplier.
As a result, the Yankee Group concludes that electric companies must begin focusing on the needs of their customers or risk losing a large percentage of their markets to alternative energy suppliers.
The Yankee Group`s findings–compiled from its Annual Survey of Energy and Telecommunications Consumers–are particularly enlightening because, in the midst of today`s electric power deregulation, 90 percent of utilities` customers and 60 percent of their value come from consumers.
“The decisions consumers are facing today about power and other services are unprecedented in the 100-year-old electric power industry,” said Karl Jessen, Yankee Group`s retail energy service director. “Electric companies must begin looking at customer models in a new way. Understanding the specific market dynamics in light of deregulation is the first step toward success.”
Other key findings included:
Electric customers who buy long-distance telephone service from MCI, Sprint and other non-AT&T carriers are more than twice as likely to switch to an alternative electricity supplier than those consumers who purchase long distance from AT&T
Approximately 25 percent of consumers say they will likely purchase electricity from an environmental organization when/if given the choice
For its annual survey, the Yankee Group conducted a survey of 1,000 consumers in the continental United States. Participants were randomly selected with national distribution, with oversampling of 250 survey participants in California–a region where deregulation is under way.
Complete findings are available in the Yankee Group`s Annual Survey of Energy and Telecommunications Consumers report. The Yankee Group`s Retail Energy Planning Service provides insights to energy suppliers on the marketing, delivery, service and sale of energy and bundled products and services in commercial, industrial and consumer markets.