Industry analysts say that over the next few years, energy will be one of the biggest sectors of the booming e-commerce marketplace, right alongside banking and financial services. An Andersen Consulting study of 144 utility companies' web sites in the U.S., Britain, Australia, and Hong Kong found most lacked the content and functionality to compete online. But the landscape is changing. According to a survey by Chartwell, an energy and utility information source, about half of U.S. utility customers will have access to services like electronic bill payment and online sign-up for service by 2001. The Internet has sharply cut the company's transaction costs, enabling it to discount its electricity prices by 10 percent.
Consumers can sign up, pay their bills, set billing dates, track and manage their energy use online.
Other Internet firms use similar tactics to lure customers. But the residential and small business end of the market targetted by most of these start-ups is highly competitive. Now nobody is making money at selling energy in the competitive retail market, online or off line. To survive, these companies will need a vision, a fat pocketbook, and at least 15,000 to 20,000 customers. But the biggest and most expensive barrier is education.