A recent RKS Research & Consulting survey indicates the introduction of deregulation and competition to electricity markets has so far brought only disappointment and confusion ñ and few benefits – to major American businesses. The national survey of medium and large commercial and industrial customers shows that U.S. corporations who replaced their electric suppliers rate the new provider lower across the board for price, performance, and value. And even while they concede their electric rates are lower, these businesses remain dissatisfied with the relationship and plan to shop again. While California and Western states' electric utility industry events are prominently playing in the news, this survey finds deregulation awareness and activity is actually highest in the Northeast and Mid-Atlantic states.
Business customers of electric cooperatives and municipal utilities consistently give their suppliers higher performance and value scores than firms served by investor-owned utilities, according to the survey. Overall, switchers are more critical and less satisfied with all major aspects of supplier performance than the businesses that stayed with their original utility, the survey points out.
These results were gathered from part of the national business customer assessment performed by RKS Research & Consulting, a nationwide marketing research and public opinion polling firm based in North Salem, NY. RKS completed telephone interviews with energy decision-makers at 800 medium to large businesses, with annual revenues in excess of $2 million. In addition, RKS interviewed 400 key accounts ñ organizations with multiple locations, annual revenues in excess of $10 million, and employee populations in excess of 1,000. The interviews, drawing on both regulated and choice markets, took place in October and November 2000. To find out more information about this survey
click here to be taken to the RKS web site.
(Source: RKS Research &
Consulting)
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