Competing Against the Utility: A Case for SOS Tracking & Forecasting

Can you afford not to know your greatest competitor’s current and past pricing? And perhaps even more importantly, their future pricing? We think not.

The holidays are upon us!

November is shaping up to be a cold one, particularly for us New Englanders, and the markets are on the move.

Winter gas prices are historically high this week, pushing power prices higher as well, and utilities are posting updated rates for the New Year.

Those two pieces of information probably sound funny next to each other, as the first seems much more pressing and relevant than the latter. The notion that Default or Standard Offer Service (SOS) rates are trivial and ‘nice to know’ at best has become common. However, we at TRUELight highly disagree.


Think about it this way: in almost every market, the local utility is your greatest competitor. Can you afford not to know your greatest competitor’s current and past pricing? And perhaps even more importantly, their future pricing?

In most markets, the utility SOS rate establishes the formal and perceived benchmark for “good value.” Many shopping websites prominently publish the utility rate as a data point for comparison. A number of utilities actually put the SOS Rate or Price-to-Compare on the customer’s monthly bill. The SOS Rate remains the most important benchmark for residential and small commercial customers.

TRUELight provides the most comprehensive tracking and analysis of utility SOS rates in our industry. We track and publish all current and past SOS rates, as some other providers do as well. But we also take it to a whole other level of analysis that is completely unmatched:

  • We run customer load profiles against those SOS rates to establish potential competitive headroom for each market, as well as where headroom is not.

  • We also run our market-tested pricing model using various terms so you get an accurate economic assessment of the optimal term identifying the best possible “sweetspot.”

  • We also forecast where SOS rates are going. We are experts in the structure and cost components of SOS rates, and are therefore able to using our proprietary energy curves and costing data to actually forecast future SOS rates.

In short, staying on top of this stuff matters. A lot.

We have mastered tracking and reporting this data, because we believe it is essential for every retail supplier and channel partner, or broker, to have in order to sustain their profitability. Knowing which markets have headroom, and even more importantly which do not, allows you to pinpoint exactly which markets to dedicate time and sales resources to. We convert data into visual reports and analytical tools that provide a crucial strategic advantage.

Also, we keep it simple and affordable. Let us help you take advantage of these market opportunities this winter and into the New Year!

Email for more.

© 2019 by TRUELight Energy LLC

  • LinkedIn Social Icon
  • Twitter Social Icon