$1.9 billion loss for Energy Future Holdings

by admin on February 7, 2012

Energy Future Holdings Corp. reported a $1.9 billion loss for 2011. The Corporation owns TXU Energy, Luminant and Oncor Electric Delivery.

A recent article written by Jack Z. Smith in the Fort Worth Star Telegram said “’The state’s highly competitive deregulated market, now 10 years old, has stripped TXU Energy of many customer, said Bernard Weinstein, associate director of the Maguire Energy Institute at Southern Methodist University in Dallas.”

It is always good to shop around before signing up with an electricity provider. Comparison shopping puts a strain on energy companies to find ways to get you to stay with them for more than a year. It has, however, helped lower prices on electricity in Texas.

Energy Future Holdings last year reported a $2.8 billion loss. Where is all the money going and how is the Corporation going to turn it around?

In a monopolistically competitive market, firms (companies) should try to differentiate from the competition. TXU Energy has been using the no-variable campaign to set it apart from the competition.

Most customers who sign up with a variable rate electricity plan become angry due to the price increase after the first month’s bill. By not offering customers the variable plan, TXU hopes to show you it’s not going to give you any surprises.

Is it working?

Customers want to know they can trust the energy company they are signing up with but at the same time if they can save a little more money, they will take a chance with a variable plan. TXU’s fixed rate plans are very competitive compared to other Texas energy companies. This makes TXU look like a good choice for electricity service in Texas.

TXU Energy is also sponsoring film festivals and partnering with solar panel companies to offer rebates for install the panels on your home.

The future of Energy Future Holding Corp. is unclear but with back to back years posting billion plus in losses is not helping them move forward.

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