Potentia Energy Grows Book by Emphasizing Customer Service

Since first enrolling customers in the summer of 2009, Potentia Energy has grown its ERCOT book by emphasizing customer service and transparency, as the family-run REP is seeing its high-touch approach drive referrals and customer retention.

Potentia was recently awarded a 2011 Winner of Distinction Award by the Houston Better Business Bureau. Potentia said that it was the smallest and youngest of about five REPs honored by the BBB.

Anis Charania, CEO of Potentia Energy, told Matters that given the nature of the retail electric business, where an intangible commodity is resold, Potentia sees customer service as essential for adding value and differentiating Potentia in the market.

Notably, Potentia audits 100% of all of its customer bills. Charania called accurate billing and payment processing a fundamental right to which customers are entitled, and has thus devoted resources to ensure accuracy.

All Potentia executives have customer-facing responsibilities integrated into their duties, Charania added, to ensure that the company always has its "ears to the ground."

Additionally, Charania stresses transparency and simplicity in presenting products to customers. This includes making the flat monthly customer charge easy to identify and understand (which is credited back in full for usage above 1,000 kWh), and including a comprehensive list of non-recurring TDU charges in its Terms of Service, rather than only "routine" charges such as Move-In, etc.

The informed and satisfied customer base built through such an approach has resulted in Potentia having zero formal complaints at the PUCT.

More importantly, it has also driven customer acquisition. Nearly one-quarter of enrollments are unsolicited customer referrals, which do no result from any formal referral program but rather word of mouth.

Potentia's retention rate is also above 90%.

Despite its high-touch approach, Potentia is still able to be among the lowest priced REPs in the market for comparable products, with its 12-month fixed rate typically among the five lowest fixed offers.

Aside from customer referrals, Potentia uses a variety of methods for customer acquisitions, including brokers and similar indirect channels. Potentia will be focusing on expanding its broker relationships in the near-term, particularly with respect to commercial sales.

Charania started Potentia as a vehicle to retain the talent of his five children (who hold a variety of positions at the REP), and not lose them to Wall St. As such, Potentia is pursuing strategies for long-term success in ERCOT, and is not seeking to simply flip the book.