[Competition among gas utilities]. It`s a brave new world
Journal Article
·
· American Gas
OSTI ID:131737
Conventional wisdom about competition among public utilities sates that once any rival offers the commodity at a 5 percent price advantage customers will begin to switch in droves. Whether or not that was ever true for natural gas in the past, many believe it will not be true for residential and small commercial customers in the environment unfolding after Order 636, the Federal Energy Regulatory commission directive that took gas pipelines out of the merchant function and vastly increased competition in the gas market. Why won`t price drive the market? A look at lessons learned from deregulation in the telecommunications industry leads to a few reasons why: (1) Although it may be unbundled from related transportation, storage and billing services, natural gas will no longer be sold independent of the other products. It may not even be the focus of the sales transaction. Therefore,the price of gas will no longer drive the purchase decision. (2) Gaining, retaining or losing customers will be simulated only through complete understanding and fulfillment of the needs of each of the most valuable customer segments. (3) Similarly, brand loyalty will be built only if the marketer stays in touch with customers` evolving needs and continues to respond with new products. Gas utilities will need to set their strategy, identify customer needs, develop plans to meet these needs, and evaluate new products. These factors are discussed.
- OSTI ID:
- 131737
- Journal Information:
- American Gas, Journal Name: American Gas Journal Issue: 10 Vol. 77; ISSN AMGLEH; ISSN 1043-0652
- Country of Publication:
- United States
- Language:
- English
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