Press Release

PUC Hears Testimony That Savings Drives Electric Customers to Switch Suppliers, More Consumer Education is Needed

Published on 11/10/2011

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today heard from public polling experts who indicated that a majority of Pennsylvania electric consumers know they can change their electric supplier, however, less than half have explored making a change. Panelists noted that Pennsylvania is a leader for consumer education and for its electric shopping website, but that more needs to be done to inform the state’s consumers about electric competition, to drive consumers to PAPowerSwitch.com, and to promote switching suppliers.

The Commission heard from four separate firms who polled Pennsylvania consumers about shopping for the electricity. Their testimony was part of an en banc hearing to examine the status of the current retail market and explore what changes need to be made to allow customers to fully realize the benefits of competition. Audio of the hearing is available on the Commission’s website.

According to the presentations from the various public polling experts:

• A significant majority of Pennsylvanians are aware they can change their electric supplier
• Slightly less than half have actually looked into changing their supplier
• About one-third of those shopping have heard of PAPowerSwitch.com
• Of those who visited PAPowerSwitch.com, almost nine of ten respondents found it easy to use
• Price is the main concern driving customers to switch to a competitive electric supplier
• Many respondents indicated they are not switching because they perceived that the savings were not significant enough
• Consumers were more likely to switch suppliers if other products and services were a part of the offer from the supplier

Poll results were presented by Terry Madonna, of Terry Madonna Opinion Research, and Alphabuyer – a group buying company that negotiates rates, options and terms on behalf of consumers. Results from a Zogby poll and a presentation by pollster Dave Sackett of the Tarrance Group, a Washington, D.C.-based polling group, also were given.

The hearing also included panels addressing issues such as a statewide consumer-education campaign; accelerated switching timeframes; customer referral programs; retail opt-in auction; and default service plans beyond June 2013. The panels included a mix of consumer advocates as well as utility and supplier representatives.

Interested parties are welcome to submit written comments after the en banc hearing no later than Nov. 23, 2011. Comments along with any questions about the hearing should be directed to ra-rmi@pa.gov. The comments will be considered as part of the process to develop an intermediate work plan.

On April 28, 2011, the Commission launched its retail electricity market investigation, which is being conducted in two phases.  The first phase was designed to assess the status of the current retail market and explore what changes need to be made to allow customers to fully realize the benefits of competition.  On July 28, 2011, the Commission directed its Office of Competitive Markets Oversight (OCMO) to hold technical conferences to address intermediate and long term issues pertaining to the competitive retail electricity market and provide specific proposals for changes to the existing retail market and default service model. The second phase is examining and addressing how to best resolve the issues raised and implement the prudent changes identified based upon information gathered during the investigation.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner. For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. I-2011-2237952

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