Christopher Ercoli, president of the Retail Energy Advancement League (REAL) wrote about the benefits of energy choice for Virginia consumers in the Virginia Pilot last week.
Last month, Gov. Glenn Youngkin released his energy plan, which calls for more choice and competition in how Virginians get their energy. A critical part is opening access to retail energy providers, which would provide relief to consumers looking for more affordable, cleaner and reliable electricity. This would be an important step toward creating long-overdue competition in the commonwealth’s energy market and breaking the local utilities’ long-held monopolies.
Currently, residents and businesses don’t have much choice in who supplies their electricity. The state allows only two utilities — Dominion Energy and Appalachian Power — to deliver electricity to more than 90% of Virginians. This outdated model made sense a century ago when the electricity industry was new and the government wanted to ensure its viability. Today, given the innovative technologies and services now available from other companies as well as rapidly changing consumer demands, the current system is not only outdated, it’s unsuited to Virginia’s current and future energy needs.
For decades, the two dominant utilities offered little if any energy options, and their monopoly protection disincentivized innovation. They used their market control and political power to stifle efforts to reform their practices and, even worse, funded marketing campaigns to spread disinformation. These monopolies should not be working to thwart Virginia’s progress toward a cleaner, more affordable energy future that’s aligned with individual customers’ energy needs.
In all aspects of their lives, Virginians seek tailored, affordable energy services that meet the needs of their families. These demands evolved in recent years, and it’s about time the energy industry caught up. Electricity needs vary significantly, and consumers want ways to lower costs while increasing environmental stewardship. By opening Virginia’s electricity market to competition, consumers will have more power to choose their electricity provider and increased access to renewable, clean energy offerings, smart home products, free hours for home electric vehicle charging, and access to their data to help become a more informed consumer. More clean energy providers will also attract new businesses to the state, which will help to grow Virginia’s clean economy.
It’s clear that no one electricity provider can deliver all these new tools and services, much less deliver them in a way that preserves affordability without undermining reliability. Fortunately, there are now many different retail electricity providers offering cleaner energy sources that better serve the unique needs of each family and business. However, unless the commonwealth takes action on Youngkin’s plan, Virginians won’t have access to providers that can give residents not just a choice in where their energy comes from, but also competitive pricing, and products and services that reduce their energy costs.
This approach is exactly what Virginians want: Two recent surveys show they overwhelmingly support more choice and competition in the energy market. A 2017 study by Public Opinion Strategies and a 2021 SurveyUSA poll found that 88% and 77% of Virginians, respectively, want to choose their electricity supplier. These high marks aren’t that surprising when considering how entrenched our utilities have become. This sentiment is a culmination of decades of dealing with a broken monopoly system that isn’t held accountable.
The old, antiquated energy model, in which a couple select utilities are granted a monopoly over our state’s energy needs, is woefully inadequate to the energy demands of the 21st century. Fortunately, Youngkin’s plan to open energy competition is an important step forward in making Virginia’s electricity market work better for all Virginians. Virginia can and should make that element of the plan a reality. Let’s come together and make this state a cleaner, more vibrant, and more competitive place to live and work. We all want additional and better energy options — it’s time to make the switch.