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Home / FAQs / What are competitive power suppliers?

April 29, 2020

What are competitive power suppliers?

By EPSA

Competitive power suppliers are an essential part of our energy grid, providing low-cost and reliable electricity. They own, operate, and invest in power generation of all kinds (including natural gas, coal, nuclear, renewables, and storage), technologies, and facilities of all kinds.

Unlike utilities, competitive power suppliers invest in, build, and maintain projects at their own economic risk. They do not receive a guaranteed return on investment from ratepayers through utility bills, and they must compete in the market to offer safe, reliable power at the least cost.

A competitive system keeps power generators accountable and encourages more efficient operations. If a project is over-budget, late, or turns out to be unnecessary, consumers and taxpayers don’t get stuck with the bill. This leads to lower costs for consumers and encourages innovation and the adoption of newer, more efficient technology as it becomes available.

Competitive power suppliers have been leaders in investing in and building more efficient, cleaner technology while providing reliable power at the least possible cost. EPSA members are among the earliest investors in wind, solar, and electric vehicle technology, and have followed market signals to close, thousands of MWs of coal plants to transition to cleaner natural gas and renewables.

Competitive power suppliers are actively building the grid of the future while bringing you reliable, efficient power today.

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