What drives customer choice in competitive power markets? Final report

Technical Report · Tue Dec 01 04:00:00 EST 1998

OSTI ID:362638

Cates, S ^[1]

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1. Research Triangle Inst., Research Triangle Park, NC (United States)

Understanding what drives customer choice is a crucial first step toward meeting customer needs in competitive power markets. To understand the key drivers of customer choice, Research Triangle Institute (RTI) conducted in-depth telephone interviews with 150 customers in California, Pennsylvania, and Rhode Island and with 12 energy service providers (ESPs) serving these states. Because it is a qualitative study, the number of interviews is small; however, these interviews provide a first look at actual choice behavior in the US. This study also drew on previous EPRI research on customer choice and switching intentions, the US pilot program experience, actual customer choice behavior in international markets, and lessons learned in other deregulated industries. This study identified by customer sector--residential, small and medium commercial and industrial (C/I), and large C/I--the factors customers consider when choosing an electricity supplier, customers` reasons for switching electricity supplier, and customers` reasons for not switching. One of the key findings of the study is that the key driver for switching electricity supplier is the desire to save money. In markets where energy service providers can offer significant savings, customers are switching; but, in markets where no price incentives exist, customers are reluctant to switch.

• Research Organization: Electric Power Research Inst., Palo Alto, CA (United States); Research Triangle Inst., Research Triangle Park, NC (United States)
• Sponsoring Organization: Electric Power Research Inst., Palo Alto, CA (United States)
• OSTI ID: 362638
• Report Number(s): EPRI-TR--111806
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
ATTITUDES
COMMERCIAL SECTOR
COMPETITION
ELECTRIC POWER
HUMAN FACTORS
INDUSTRY
MARKET
PUBLIC OPINION
RESIDENTIAL SECTOR