Energy Strategy: Flat Bills, Peak Satisfaction?
Why a risk-hedging product for small customers isn’t the gamble you may think.
Most believe flat electric bills pose tremendous risk, but the reality is that an exciting pricing opportunity exists. The energy supplier can manage uncertainty by gradually building program participation as it learns to balance risk and returns, or through a risk adder. The experience of Internet and telecom service providers suggests that safe, profitable flat fees can be constructed, and that customers will buy them.