Utilities
Total market: $357 billion
Net share: $5.2 billion
Net share in 2004: $108 billion of a $385 billion market
More so than the Net itself, in-progress deregulation of the utilities industry is driving change here. Consumers in 21 states can now choose their power and gas supplier, and nationwide deregulation should be complete by 2008. Meanwhile, the Net has merely given utility companies a user-friendly makeover, and generated a few online middlemen with moderate effect.
Deregulation and the Internet have forced utilities to become more customer-friendly through online services. Led by Con Edison and Boston Edison, the industry has been the fastest adopter of online bill presentment and payment, which saves $1.15 per bill — that’s $23 million for the industry in 1999 and a whole lot of trees. Real-time billing and metering online is coming soon. Problem is customers must adopt the services in order for them to matter. Companies such as Con Edison send bills online and through snail mail unless customers request otherwise. But over the next two years billing will migrate online, predicts Datamonitor’s Alison C. Hills.
Here’s where the action is: Altra is the online B-to-B energy exchange where utilities buy and sell oil, natural gas, and energy. Other companies have emerged as online power middlemen who buy wholesale from power producers, and then mark it up for online sales. Utility.com promises cheaper rates (though the difference is minimal to most consumers) and GreenMountain.com sells only wind, hydroelectric, solar, and geothermal power. Essential.com bundles energy with phone and Internet access. Feasible…if customers want brand-name power.
Thank to the long distance calling card, you can economize money, since you may effortlessly check your bill.
