Research for Marketing Class

[annaburns18]

Hello to all,
I am currently enrolled in a Marketing course and my assignment is to do research into the customer experience when shopping for deregulated energy ( electric or gas) in your state. Please tell me what has been your experience with this service? What has been your #1 concern? Frustration? Is there anything you could have avoided in the process that could help someone less experienced? Please offer any Tips that you may have, to help others.
Sincerely,
Anna

[phantom]

I'll bite... I live in Pennsylvania. After hearing lots of First Energy ads, I decided to go shopping for an energy supplier to see if I could save any money. I checked a state run web site that listed the rates of all of my energy supplier options. But, none of the rates seemed significantly lower than my current rate. Just to be sure, I looked at my bill to see exactly how much of it went to the energy supplier and did the math to see how much I could save. I came up with a savings of just a couple bucks a month. Switching didn't seem worth it for such a low amount, especially not when rates could change and cancel out my savings. If I ever see my energy bill start creeping up, I might look into switching again. But, for now, I'm content with what I'm paying. If I had friends who were interested in switching, I'd tell them to look at the numbers for themselves but not to get their hopes up about saving a ton.

[bjl584]

I'll bite... I live in Pennsylvania. After hearing lots of First Energy ads, I decided to go shopping for an energy supplier to see if I could save any money. I checked a state run web site that listed the rates of all of my energy supplier options. But, none of the rates seemed significantly lower than my current rate. Just to be sure, I looked at my bill to see exactly how much of it went to the energy supplier and did the math to see how much I could save. I came up with a savings of just a couple bucks a month. Switching didn't seem worth it for such a low amount, especially not when rates could change and cancel out my savings. If I ever see my energy bill start creeping up, I might look into switching again. But, for now, I'm content with what I'm paying. If I had friends who were interested in switching, I'd tell them to look at the numbers for themselves but not to get their hopes up about saving a ton.

+1

I looked at the same thing from First Energy. I too live in PA. The savings weren't significant enough to switch.

[greenskeeper]

I get offers to switch, but since I live in a borough I HAVE to purchase my electricity from the borough, even though they don't have a powerplant and buy power on the open market. I don't think city govt should be in the electric business to begin with.

[Wino]

My domicile is Texas. I currently live in Dubai. When I changed my energy company in Texas, I did a lot of research, and spoke to others who had already switched. Texas has a web site you can use to compare rates, but there is a lot of reading and research necessary. I think it is "power to choose dot org". Of course, you want no spaces and a real dot.

1. Determine how long you want the contract for. When prices were going up, I opted for a two year plan to hold the current rate. When they started downward, I went for a month-to-month rate. I am back on a two year plan at a rate about 10% below the going rate now. I wish I could extend this contract, as I don't see energy dipping for at least another two years. It will be even longer if Obama is re-elected; that's not a political comment. It is economic. Obama is anti-coal, anti-oil, and that means "high energy prices."

1a. I guess from the above I should add "Watch the news for anything that you think might affect energy prices long term."

2. Read the disclosures. Look up the KWH rate, look up any fees (electronic payments are usually cheaper than mail-in payments). Look up any usage fees (most charge a stipend if you're under 1000 kWH or sometimes 500 kWH), and put the fee on your own spreadsheet for comparison. Do a graph from your lowest historical usage to your highest and compare the offers on the graph.

3. Don't forget to put in the "contract escape" fee if you opt for a long contract in your spreadsheet. Work out the graphs assuming you quit after 1/4 of the term, one half, and at the three quarters point. You'd be amazed at how much this risk can cost. Think of cell phone contract cancellation fees for a comparison.

4. Read your entire statement for at least the first three months. See if your usage, fees, and total amount are in line with your estimates. After you're content that the fees are correct, just watch the amounts thereafter. If you missed a fee, add it to your spreadsheet now, so you don't forget it next time.

5. Start shopping for a new provider at least two months before the end of your contract. I have now had four contracts with three different companies, that I can remember off the top of my head. Shop at least once every three months if you're on a month-to-month contract.

6. DO NOT LET YOUR CONTRACT EXPIRE. This may put you on the "spot rate" market, which means you'll pay up to three times the going rate. Imagine getting a $750.00 electric bill when you expected $250. And it will be for about two months, because you're in the next month when you get the first bill that you already owe.

7. Talk to your spouse about your findings and insure the two of you are agreed before you make any changes.