Northeast distribution utilities in the incumbent LSE position have about a $12 per month advantage over competitive retail suppliers in serving the average customer, Manu Asthana, President of Direct Energy Residential, said during DNV GL's Retail Energy Executive Forum

The advantage stems from not having to incur costs to acquire the customer, and because other administrative costs of serving the customer are, in most states, ratebased.

While a disadvantage, Asthana used the data point to support his "optimistic" view of the retail markets, noting that suppliers can overcome this incumbent advantage with their added value.

"My challenge to all of you is, can you innovate, and add more than $12 a month in value to your customers," Asthana said, stating that this barrier doesn't seem like an impossible hill to climb, and that Direct Energy feels like, "we're already doing that."

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