Polling by Morning Consult on behalf of the Electric Power Supply Association (EPSA) examined what Americans want from their energy suppliers and what concerns are at the forefront for households across the country in 2023. The survey was conducted with a sample size of 2,205 U.S. adults across demographics, regions, and educational attainment.
America’s historic preference for open markets and competition over monopoly power extends to the energy sector, with consumers expressing a clear preference for competitive power markets. A majority of adults prefer to live in a competitive power market, according to Morning Consult’s findings in a poll conducted for the Electric Power Supply Association, and an analysis of responses shows two in three older and higher-earning adults prefer competitive power markets to energy monopolies. Just 15 percent of adults prefer a monopoly or unrestructured set-up.
Morning Consult Survey of 2205 American adults, conducted for EPSA June 23-25, 2023.
The poll found that consumers gravitate towards competitive markets based on the ability to choose between providers and the expectation of lower prices. Their preference is supported by research from the Pacific Research Institute, which reports that states with monopoly or partially competitive models saw power prices rise 20.7 percent between 2008 and 2020, while competitive markets across 14 jurisdictions saw prices decrease 0.3 percent.
- A Preference for Affordable Energy
The poll’s results show that a majority (52 percent) of residents understand the role of competition in bringing additional choices to market and driving down consumer prices. The expectation of lower prices was ranked the number one determining factor in their preference over a monopoly market.
Morning Consult Survey of 2205 American adults, conducted June 23-25, 2023.
Wholesale competitive markets have met this price concern to the tune of $3.2-$4 billion in annual savings across the PJM Interconnection footprint, and a 35 percent price decreases in New England’s wholesale electricity prices between 2004-2017.
- More Energy Choice
Consumers also love choice. Rated as the second reason for their preference for competitive markets, the ability to choose between providers delivers clear benefits. In the wholesale market, competition between power generators allows more options, price transparency, and potential solutions for reliable and cleaner electricity.
- Investors Bear the Costs of Energy Infrastructure, Not Consumers
A core benefit of competitive energy markets over monopolies is that investors are responsible for any cost overruns from energy infrastructure development, not customers. While consumers might not be explicitly aware of this dynamic, the poll found that they understand and support it intrinsically – 66 percent of adults surveyed agree that individual ratepayers should not be responsible for excess costs associated with over-budget energy infrastructure projects.
Morning Consult Survey of 2205 American adults, conducted for EPSA June 23-25, 2023.
But adults living in unrestructured monopoly states are on the hook for expensive capital investments whose costs can change between design and implementation, much to the dismay of their consumers. Georgia’s infamous Vogtle nuclear plant is seven years behind schedule and $17 billion over budget—saddling customers in the state with higher bills for decades to come.
In competitive power markets, on the other hand, private investors and shareholders are on the hook, not consumers. Since power producers in these markets compete to sell power at a market price, they take on the costs and risks of generating that power.
That structure also means that power producers in market regions can draw on shareholders to finance efficient new plants and investments in innovative technologies. In the last year alone, competitive market regions have nearly doubled their deployment of battery technology.
Americans Want Choice
As Morning Consult’s broader findings make clear, Americans want cost-effective and reliable energy. Markets are delivering every day through increased energy savings, more choices for consumers and ratepayer-friendly safeguards.
