January 12, 2012
Here is a little known fact about electricity in the United States: In 15 states, you have a choice in your power provider. It’s not necessarily the large power company that sends postcards when you move or the name provided on the list of services your condo association gave you.
Power2Switch is challenging the belief that consumers don’t have a choice in their electricity supplier by providing education, information and an online platform to compare prices. Launched in Chicago by Seyi Fabode, a veteran of the electricity industry, and Phil Nevels, an electrical engineer, their goal is to educate consumers while promoting sustainable energy.
Power2Switch represents an emerging startup business model that balances the opportunity for the entrepreneurs with a keen connection to consumers’ affinity for online comparison shopping and a commitment to sustainability. They found a significant business opportunity with the information void present in the deregulated power space and built their platform to address that problem.
Their business path is not without challenges, though. Since the market recently opened for alternative electricity suppliers, Power2Switch spends time building awareness, educating consumers about their options, and dealing with the hesitancy consumers have of leaving such an important household or business decision to a startup. They are also trying to handle less than reputable competitors that are further confusing consumers.
The Power2Switch team is pushing forward with a (free) web portal full of useful educational resources, providing answers for consumers during the electricity provider evaluation process. Significant consideration was taken when selecting the electricity providers for the comparison queue to build credibility and trust. Current users who do some comparison shopping and switch providers save an average of 21% on their electric bills.
As the cold winter months and surging electric bills are upon us, are you intrigued enough to make the switch?
Note: The 15 deregulated states where consumers can choose their electricity provider are: Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island and Texas.
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