Why Competition?

Competition is at the core of our free-market system. Competitive markets produce the most efficient results in the economy, spurring innovation, driving down costs, and providing a broader array of choices for the consumer. That was true in the 1980s with the deregulation of the telecom and natural gas sectors, and it’s still true today. 

The rapid pace of innovation is delivering new digital technologies that are changing the way we receive and use energy. Unfortunately, the traditional anticompetitive model of an electric utility with a monopoly over both production and delivery of power is standing in the way of a truly modern electricity system.

The Energy Choice Coalition is a nonprofit organization dedicated to accelerating the modernization of the electricity sector by opening power generation and electric retailing to true competition in states where utilities still retain monopoly control over those services. The Energy Choice Coalition educates the public on the benefits of market-driven competition and promotes policies at the state and federal levels that break down barriers to private investment and hasten the transformation of the electricity sector.

Today, more consumers than ever have the freedom to choose their electricity services provider, but a fully competitive market - Texas having the freest market of all the states - is still not available everywhere and incentives built into current federal regulations are holding back the transition to a 21st Century power system.

As the electricity sector undergoes rapid change, consumers should be in the driver’s seat when it comes to deciding where their energy comes from and what services are available to them. Electricity is foundational to modern life but the absence of competition limits innovation and denies end-users more advanced and cleaner energy options and technologies.

As regulators and policymakers debate the pros and cons of pricing and market reforms, carbon-emission restrictions, renewable energy mandates, storage, advanced metering, distributed energy resources, and other changes affecting electricity markets, the Energy Choice Coalition is here to remind them that competitive markets are the most effective way to give consumers what they want – abundant, affordable electricity that is reliable and clean.

“States that left regulated electric monopolies in the retail supply business have seen these monopolies grow at the expense of competition. Quarantining the monopoly appears to be the single most effective approach to bringing about robust retail competition. It may be the only effective approach.”
— THE NEED FOR ELECTRICITY RETAIL MARKET REFORMS, Cato Regulation Magazine Fall 2017
 

Competitive Market Design Has Multiple Benefits

 
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Reason #1

Independent power suppliers provide consumers with a greater voice in the type of energy they rely on every day, allowing them to pick cleaner and more affordable options based on personal preferences.

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Reason #2

Competitive electricity markets best serve our economic and environmental interests, and are the most effective mechanisms for promoting innovation and efficiency.

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Reason #3

Government subsidies distort markets, increase consumer prices, and suffocate innovation, and job growth. Energy products and services should compete on a level playing field.

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Reason #4

Consumers deserve low prices, reliable and secure energy supplies, and quality service. Competition delivers more options, more innovation, more control, more savings, more reliability, and more security.


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The Time for Consumer freedom is now

Consumers have more energy options today than ever before but not everyone lives in a place with electricity choice. Help us change that.