Retail Power: Double Down or Fold?

Deck: 
Utility retail is at a crossroads. Energy executives must decide which path to follow.
Fortnightly Magazine - June 1 2003
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.


Utility retail is at a crossroads. Energy executives must decide which path to follow.

Recharge the Economy with Renewable Energy Tax Credits

There are only two routes to creating or maintaining shareholder value in competitive retail electricity marketing: double down to grow the business significantly or fold and divest the business from its portfolio. Utilities and their competitive retail affiliates should determine today which of these two strategic bearings they wish to follow. The tentative middle ground of hold is simply a way to postpone the inevitable and erode shareholder value.

Despite the problems facing existing players and new entrants to the retail electricity markets, this may actually be the best time to expand operations and influence the retail market development process. There are short-term market conditions that favor aggressive entrants. These are coupled with longer-term structural market forces that we believe will provide aggressive but selective retail players the opportunity to create significant shareholder value.

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.