Still, consumer switching has been relatively slow. In effect consumers are told, 'Restructuring is good for you. Consumers are given a shopping credit, or price to compare. If the shopping credit is high enough, retail marketers can come in and hope to compete on price as well as with value-added products. RAP also identifies consumer education and fuel source disclosure as additional factors which can encourage the development of demand for green power.
Consumers are unfamiliar with decisions about electricity and market inertia is strong.
This is another reason why mass marketing to residential customers has been curtailed or eliminated by some suppliers. But there are opportunities to overcome this hurdle by educating and informing consumers. Consumer education, backed by the information on which to base decisions, will encourage market participation, reduce customer acquisition costs and boost green power choice. Every state that restructures has ordered a consumer education plan. Education messages should encourage switching and let people know that electricity choices affect the environment.