Trends Analyzed From 2021 EIA Data Shows Increase in Shopping Activity and Savings for All Customer Segments
HARRISBURG, PA (September 21, 2022) – Retail Energy Supply Association (RESA), the nation’s leading trade association representing competitive retail energy suppliers, released its 2021 data report based on the latest figures collected by the U.S. Energy Information Administration (EIA).
For the last decade (2011 to 2021), nearly 27% of residential customers receive their power from competitive retail suppliers. This represents 15.5 million consumers living in energy choice states and jurisdictions who are customers of retail suppliers.
The data also shows that over 85% of power provided by retail suppliers to commercial and industrial customers increased significantly. More than 85% of the non-residential supply requirements are served by retail suppliers within the states/jurisdictions, enabling retail power competition. During this same period, the average power price in the competitive states/jurisdictions rose by 4.6%, while the rates for this same customer group in the monopoly states increased by 18.6%.
“The data is clear – a competitive market benefits customers from residential to business and industrial,” said Tracy McCormick, executive director of RESA. “Allowing consumers to have a choice in their energy supplier can save money or allow individuals to choose products, such as solar or green energy, that make sense for their needs.”
In 2021, EIA data shows that customers in monopoly states experienced cost increases of 28.5% more than their counterparts in the competitive states/jurisdictions compared to what they paid in 2008. During this time period, customers in the monopoly states could have saved more than $560 billion if they had experienced the same price trajectory as the competitive states/jurisdictions. By major customer class, these unrealized savings in the monopoly states would have cumulatively been $189.4 billion for residential customers, $230.1 billion for commercial customers and $138.2 billion for industrial customers. Meanwhile, the 14 competitive states/jurisdictions saved an estimated $382 billion during this time period compared to the monopoly states’ price trajectory. These data points highlight the impact of cost savings that competitive power markets have realized.
“This data reinforces the importance of allowing consumers to pick their power supplier,” said RESA’s president, Gretchen Fuhr. “Not only do competitive power markets encourage potential cost savings, but it also helps drive industry innovation and adoption of green products.”
To learn more about RESA and the benefits of energy choice, visit https://www.resausa.org.
The Retail Energy Supply Association (RESA) is a broad and diverse group of retail energy suppliers who share the common vision that competitive retail electricity and natural gas markets deliver a more efficient, customer-oriented outcome than a regulated utility structure. RESA is devoted to working with all stakeholders to promote vibrant and sustainable competitive retail energy markets for residential and industrial consumers. For more information, visit www.resausa.org. Follow RESA on LinkedIn, Facebook and Twitter.
The Power Group for RESA