Dive Brief:
- Energy efficiency programs are now the most effective way to cut power bills in Illinois, according to the Citizens Utility Board (CUB).
- The ratepayer advocate issued a report finding efficiency now trumps low-cost power deals in the state, saying deregulation has raised power prices for Illinois residents.
- According to CUB, savings offered by alternative suppliers have either shrunk or disappeared since Commonwealth Edison shed higher-priced power contracts in June 2013.
Dive Insight:
While there are still opportunities to save through electricity competition, CUB Executive Director David Kolata said "shopping for an alternative supplier has become more of a gamble in Illinois."
In a new report focusing on the energy market in northern Illinois, CUB found that efficiency is now a better deal than searching for low-cost power deals and "has overtaken competition as Illinois’ most reliable way to save money on utility bills."
The group said savings offered by alternative suppliers have either shrunk or disappeared since ComEd became free of higher priced power contracts in June 2013, as well as a June 2014 increase in capacity costs.
CUB found that the average price offered by ComEd competitors marketing to individual consumers has increased 23%, from about 6.7 cents/kWh in May 2013 to about 8.2 cents/ on Feb. 25, 2015, and is higher than ComEd's price, about 7.6 cents/kWh through May.
"Amid a volatile energy market, consumers need simple, free and no-risk tools to help them save money," Kolata said. The group's CUB Energy Saver has been helping consumers cut electricity waste by an average of nearly 4%. The service provides simple recommendations designed for homes on modest budgets.
CUB estimated that if all 3.48 million ComEd residential customers used the tool, total yearly savings could reach about $153 million.
