More often than not, Ohio consumers don’t save money when they pick an electricity choice plan, rather than the standard electricity offer, according to a study from Ohio State University.
Instead, they pay more, the study found.
Noah Dormady, an OSU associate professor in the John Glenn College of Public Affairs , said: “The bulk of the offers provided to Ohio consumers are way above what those consumers would pay if they did nothing.”
Dormady, lead author of the study, found that 72% of the most popular retail offers over the past decade have been more expensive than the default price.
In 1999, state lawmakers deregulated the energy market , allowing consumers to buy electricity from outfits other than the established companies, such as AEP Ohio or Duke Energy. The idea was that market competition would help consumers trim their utility costs.
The Public Utilities Commission of Ohio certifies about 50 different power suppliers across the state. Retail choice only covers power generation; customers can’t shop for different prices on distribution or transmission costs.