Electricity retailing

Beginnings of Electricity Retailing
– Electricity retailing began in the late 19th century.
– Initially, electricity was used for street lighting and trams.
– Large-scale electric companies started selling electricity to the public.
– Electric companies or municipal authorities were responsible for providing electricity services.
– Residential, commercial, and industrial use of electricity expanded with the development of electric motors, heaters, and communication devices.

Monopoly Supply in Electricity Retailing
– The rapid growth in electric appliance usage led to the electrification of various sectors.
– Public utilities or government-owned authorities became responsible for supplying electricity.
– Some countries established statutory or government-granted monopolies, such as Eskom in South Africa.
– Electricity retailing involved managing connections, disconnections, and billing by the local monopoly supplier.
– Marketing efforts encouraged electricity usage during excess capacity and conservation during supply shortages.

Creating a Market in Electricity Retailing
– Electricity providers are known as electric companies or power companies.
– Deregulation of the electricity market occurred in many countries, including the United Kingdom.
– Electricity retailing transformed from an administrative function to a risk management function in a competitive market.
– Retailers offer fixed or variable prices and manage the risk of purchasing electricity from spot markets or pools.
– Customers can choose from multiple suppliers and opt for green power sourced from renewable energy generation.

Electricity Retailing in the United States
– Many US states have deregulated their electric markets, allowing for competition among retail electric providers.
– Deregulation has been a controversial topic in electric retailing.
– Examples of electricity tariffs for operators in Texas are available.
– Specific companies, such as Entergy Texas, Inc. and El Paso Electric Company, provide residential service rates.
– The list of energy deregulated states can be referenced for more information.

Related Concepts in Electricity Retailing
– Distributed generation
– Eugene Green Energy Standard
– Net metering
– Microgeneration
– Peak demand and off-peak
– Vehicle-to-grid
– Deregulation of the Texas electricity market Source:  https://en.wikipedia.org/wiki/Electricity_retailing