Pennsylvania has a unique opportunity to unleash the true value of competition by adopting several commonsense reforms.
Estimated Number of Residential, Commercial & Industrial Customers on Default Service*
*(Source: Based on U.S. Energy Information Administration (EIA) data for 2019, there approximately 3.6 million residential customers, 400,000 commercial customers and 2,500 industrial customers on default service.)
DEFAULT SERVICE TRANSITION
In states where competition is nonexistent, an energy consumer has no choice but to purchase from a monopoly utility service provider, offering few or no options in terms of energy management, efficiency, and pricing. But even in Pennsylvania, where competition is only partially implemented, regulated monopoly utilities remain firmly in charge of the customer relationship.
Pennsylvania customers who do not choose an electric supplier are automatically assigned to the utility at the current default service rate. By fully transitioning these customers away from the default rate and into the market, Pennsylvania unleashes the full value of competition.
SUPPLIER CONSOLIDATED BILLING (SCB)
See how Supplier Consolidated Billing works to benefit consumers.
When the customer has the power to choose suppliers, suppliers seek innovative ways to win and retain them.
REDUCED COSTS TO ELECTRIC DISTRIBUTION COMPANY (EDCs)
With billing moved to the supplier, EDC costs are reduced by moving the customer relationship to where it should be, with the customer’s supplier of service.
SCB allows the retail supplier to consolidate all electricity costs into one bill (including utility costs) and invoice the customer directly.
Think of it this way: When you order merchandise from an online retailer, you don’t get billed by FedEx or UPS, which deliver the product. You get billed by the online retailer, with shipping charges included. Your electric bill should be no different. When you order a product—in this case, electricity—from a retail supplier, you pay the retail supplier directly while the retail supplier is responsible for paying “shipping” to the utility for its billed costs.
Additionally, SCB will provide consumers and the Commonwealth with additional benefits, including:
Consumers know exactly who they’re dealing with and exactly how much they’re being charged.
Suppliers provide increased data to consumers on their electricity consumption and help them use less, and can also offer alternative green energy solutions.
Electric competition can spur innovative, value-added services that deliver on the promises of choice, convenience, and control. It can enhance the overall value of electric service but only if the market is allowed to move competition forward.