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One of the benchmarks of a successful free market is the range of choice provided to customers. Choice can be viewed both in terms of the number of firms active in the market as well as the variety of products those firms offer to consumers. In the first decade of retail electric deregulation in Texas, the market experienced dramatic changes in both metrics. In 2002, residential customers in the Dallas-Fort area could choose between 10 retail electric providers offers a total of 11 price plans. By the end of 2012, there were 45 retail electric providers offering 258 different price plans to residential customers in that market.[11] Similar increases in the number of retail electric providers and available plans have been realized in other deregulated electricity market areas with the state.
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In order to prompt entry into the market, the price to beat would have to be high enough to allow for a modest profit by new entrants. Thus, it had to be above the cost of inputs such as natural gas and coal. For example, a price to beat fixed at the actual wholesale procurement price of electricity does not give potential entrants a margin to compete against incumbent utilities. Second, the price to beat would have to be reasonably low, to enable as many customers as possible to continue to consume electricity during the transition period.


In order to prompt entry into the market, the price to beat would have to be high enough to allow for a modest profit by new entrants. Thus, it had to be above the cost of inputs such as natural gas and coal. For example, a price to beat fixed at the actual wholesale procurement price of electricity does not give potential entrants a margin to compete against incumbent utilities. Second, the price to beat would have to be reasonably low, to enable as many customers as possible to continue to consume electricity during the transition period.


How does that work? Spark Energy buys electricity and competes in the market for the best price -- a competition that ultimately drives prices down and allows us to deliver more value for your money. In Texas, switching to a different electricity provider is kind of like changing to a different long distance company. When you switch to Spark Energy, the utility will continue to deliver electricity to your home but Spark Energy will handle all the billing, including the utility’s delivery fees and the electricity you actually use.
TDU Delivery Charge: TDU stands for transmission and delivery utility — in other words, the utility company in your area that is actually piping the energy from the power generation companies into your home. (Remember, REPs in Texas are just the middleman.) The TDU delivery charge is set by the utility and is consistent from plan to plan and provider to provider within its service areas. For example, AEP , the TDU for Corpus Christi, charges the same delivery fee for all TXU, Direct Energy, and Reliant plans. You don't typically get a choice in utility company, and therefore, these fees are pretty much unavoidable, non-negotiable, and won't factor into choosing an electricity plan or provider.
Utility companies are responsible for transmission and delivery of electricity even in energy deregulated parts of Texas and should be contacted in the event of a power outage. Your retail energy supplier may provide you competitive electric rates or exceptional customer service, but they cannot repair power lines or restore your service. In the case of an emergency, contact:
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