The recently announced acquisition of First Choice Power and it’s 220,000 customers by Uk based Centrica for $270 million raises questions about what what this will mean for competition in Texas. Centrica already owns and may be meaning to fold the acquisition target First Choice Power into, Direct Energy, a major supplier in many deregulated markets, including Texas. Direct Energy owns former former incumbent utilities WTU and CP&L. With the acquisition of First Choice Power, Centrica now controls three of the brands that once served their respective areas as monopoly suppliers.

The recent acquisition of Startex Power by Constellation New Energy further demonstrates that competition in Texas appears to be consolidating. Time will tell whether this is good for consumers or not.

When a vast number of customers (830,000 in Texas by Centrica companies) are served by only a handful of suppliers, consumers rarely benefit. Time will be the test and, consumers hope, the Public Utility Commission of Texas will be the judge.