|
Direct
Energy splashes into
giant New York market
Eyes 9 million potential customers
Direct
Energy is about to bite into the Big Apple.
The
firm has "people on the ground" and is about to launch
a multi-media campaign in the Empire State, Senior Vice President
Badar Khan told RT in an interview.
New
York is a mouthful with 9 million potential residential and business
customers.
Direct
Energy intends to sell to all -- residential as well as C&I
customers of all sizes.
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That
hasn't been the case in other new markets they've tackled recently.
In
many, the target has been C&Is.
Khan
credits the decision to make a big splash in New York to the outstanding
leadership of the PSC -- and particularly Chairman William Flynn.
They've
promoted selling to all classes.
PSC
efforts to standardize market rules, develop marketer referral programs,
buying of receivables and market-based standard rates were big factors,
Khan told RT.
Direct
Energy plans to begin selling first in Consolidated Edison, Orange
& Rockland and Niagara Mohawk (National Grid) territories, offering
power first, then gas.
Ultimately
-- though probably not this year -- the firm will offer bundles
that include both commodities and appliance services.
Dual-fuel
offers have been popular in other states, including Massachusetts
where Direct began selling gas and power only last year.
It's
one of a long list of new markets Direct Energy entered in a spectacular
growth spurt in the Midwest, Northeast and Mid-Atlantic.
Direct
Energy late last year either entered for the first time and/or expanded
its offerings in Illinois, Massachusetts (RT,
9/21), Connecticut, Rhode Island (RT,
10/24), Maine (RT,
12/20), Maryland and New Jersey (RT,
6/24).
More
states to come?
Khan
sees other markets he'd definitely like to enter but not at the
same pace as last year.
The
firm will build customers in its existing markets before going into
new states.
Last
year's crop of new markets is "exceeding expectations,"
Kahn told RT.
In
less than a year, Direct has passed the million-mwh mark in the
new states -- "a pretty good pace of growth."
Unlike
some other new markets Direct Energy has entered this year, New
York has attracted many competitors.
"We
would like to see other companies as financially strong [as Direct]
enter the marketplace," Khan noted.
C&Is,
he finds, want to do business with big firms with strong balance
sheets.
Direct's
big, big corporate parent Centrica and its own 5+ million-customer
base in North America are part of its selling appeal, he added.
Direct
offers, too, competitive pricing and risk mitigation, a customer-centric
(rather than deal-centric) approach and a willingness to work with
customers throughout the relationship to make sure sales reps are
giving customers the "best possible advice."
Khan
points with pride to a commitment to innovation and flexibility
in Direct's products.
"Competition
should bring about innovation, efficiency and better customer choices,"
Khan noted.
The
firm is committed to doing its part to educate customers in new
markets, he added.
It's
already started educating regulators, RT has observed. Direct Energy
is one of a handful of marketers that invests in improving markets
by interceding in state commission cases.
The
firm makes its presence known in another way. It takes on the role
of a good corporate citizen.
Direct
gives money to charity and took the lead in raising more funds for
low-income heating help in Ohio.
"If
you're going to be a player," you need to play a role in the
community, Kahn added.
Originally
published in Restructuring
Today on January 26, 2006
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