Power marketers see increased share of retail electricity market
Power marketers, entities which buy energy from utility companies and resell it, have seen their market share increase in recent years, according to a report from the U.S. Energy Information Administration (EIA).
Power marketers supplied about 21 percent of the retail electricity sold in the United States in 2016, up from 11 percent in 2005. Meanwhile, the share of retail electricity sales of investor-owned utilities fell to 52 percent in 2016 from 62 percent in 2005. Investor-owned utilities (IOUs) have historically been the primary producers and distributors of electricity to retail customers in the country. Other entities providing retail electricity sales are cooperatives and government utilities.
The EIA report also found that retail consumption of electricity has remained relatively flat in the U.S. over the past decade. In the residential sector, sales per capita have declined from 2,264 terawatthours (TWh) in 2005 to 1,919 TWh in 2016.
Power marketers act as intermediaries between the retail buyer and the generator while giving customers choices in suppliers of electric power. Retail sales of electricity by power marketers have grown from 412 TWh in 2005 to 767 TWh in 2016.
In 2004, 98 percent of all U.S. power marketer sales were in Texas, but by 2016, power marketers were active in many states. In fact, in Massachusetts, 89 percent of retail electricity sales is provided by power marketers. Further, power marketers provide 70 percent in Connecticut, 66 percent in Texas, and 63 percent in Pennsylvania.
