Introduction to
Uniform Business Practices
With the restructuring of the electric and gas industries, a
myriad of business transaction practices must be created to
facilitate interaction between competitive energy
service companies and regulated utilities. The necessary practices are usually embodied in regulatory commission rules,
utility tariffs, operating agreements and contracts.
As states introduce retail access, it has become apparent that business practices are varying
significantly across the nation. The lack of uniformity, if unchecked, has the potential to be a
significant impediment to the profitable market entry and operation of
competitive energy service providers.
Competitive energy service providers differ from traditional
utilities in that they usually do business across multiple service territories
and states. The diversity in rules and procedures for providing essentially the
same service in different areas increases the costs to consumers and decreases
the profits of the competitive providers.
This lack of uniformity could potentially restrict their entry
into the competitive market place and subsequently reduce consumer benefits from
full retail access.
The effort to promote uniformity across service territories
and state jurisdictions is termed "Uniform Business Rules" or
"Uniform Business Practices." Here we will call it
"UBP" for short.
More on UBP:
|