Preparing for the inevitable: A business plan for retail wheeling
- ComPower Group, Arlington, VA (United States)
The most difficult task electric industry incumbents confront is acknowledging the fundamental changes now taking place in the marketplace. Utility managers must get ready to do battle for their retail customers. Independent generators, having served as one of the catalysts for this revolution, must learn to cope in an environment which threatens to disrupt their existing contracts and changes the manner in which they traditionally have built new plant. A review of other industries which have moved from a heavily regulated model to one base on customer choices reveals the following common characterisitcs: (1) The number of suppliers - increases - at least in the short-term. (2) All potential suppliers have access to customers. (3) the price of the deregulated commodity declines. (4) Services are unbundled as parties seek to satisfy customer needs in new ways. (5) The pace of innovation increases. (6) The cost of capital increases for industry incumbents. (7) Customers without perceived leverage are protected. (8) Incumbents have a difficult time adusting to the new environment. (9) Those incumbents who reat proactively fare the best. A six-point strategy for confronting competition is given and discussed in detail.
- OSTI ID:
- 28904
- Report Number(s):
- CONF-9410227-; TRN: 95:000174-0003
- Resource Relation:
- Conference: 1. annual meeting of the Power Marketing Association (PMA): strategies for success in power marketing, Arlington, VA (United States), 13-14 Oct 1994; Other Information: PBD: 1994; Related Information: Is Part Of Strategies for success in power marketing; PB: 294 p.
- Country of Publication:
- United States
- Language:
- English
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