Over the last few years I have followed electricity rates and issues affecting electricity rates including bills in Austin to address the failures of deregulation. Here is a recap of the issues that I have seen that negatively affects consumers in Texas.
No internet access. The Public Utility Commission created a website called the Power to Choose to help homeowners find the lowest available rate. Unfortunately this site does nothing for those consumers without internet access or who do not know how to effectively use the Internet.
Stuck with Reliant. For those who did not change from Reliant when deregulation allowed the middleman electricity sellers, they were put on a month to month rate which can peak in the summer to the high teens or low twenties. Many elderly and low income families are stuck in this plan. Month to month plans are some of the most expensive plans available.
Timing the market. If a homeowner has the time, patience, and luck to "time" the market they can sign a 1-2 years long term contract, but it has to be timed correctly. If they sign a 12 month contract during the summer, they will be locked into a very expensive rate. When it is time to renew, they will be again locked into a high rate.
No competition. There really is no competition in the market. The rates fluctuate month to month and all electricity resellers vary their rates by this fluctuation. So if a consumer wants to "shop around" in August then they can only shop from a range of rates that are inflated. If they shop in Feb, the rates across the board are lower. This is not competition. This is self regulation by the providers.
No bargaining power. The consumer has no bargaining power when choosing an electricity rate. Resellers will not negotiate and consumers are restricted to rates based upon the time of the year.
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