The promise of retail energy marketing, but probably not thecurrent results, seems to be providing enough support to the gasand power marketing community that few have decided to exit thebusiness, according to the results of Benjamin Schlesinger andAssociates’ 12th edition of its Directory of Energy MarketingService Companies.

The total number of marketers in Schlesinger’s survey droppedslightly to 541 last year from 567 in 1996. But power marketershave grown in number significantly over the past year and coulddouble their numbers over the next year. The number of powermarketers increased to 90 from 87, and another 163 power marketersregistered at the Federal Energy Regulatory Commission arepreparing to enter the fray.

The more mature gas marketing community seems to be undergoingcontinued consolidation, however. The number of active gasmarketers declined by 5% to 288 firms, the Bethesda, MD-basedconsulting firm reported.

“Mergers and consolidations are changing the shape of energymarketing in the U.S. and Canada, but nevertheless, the industryremains diverse, competitive and highly unconcentrated,” saidBenjamin Schlesinger, president of the firm.

“The gas marketing industry has shown the evolution of matureniche players even as the larger companies comprise a larger shareof the volumes traded. Our survey found that the power market isevolving with a combination of sophisticated use of commercialmechanisms, including gas/power tolling strategies, and an emphasison reliability to build a sound customer base.”

BSA’s directory provides comprehensive data on the marketingindustry, including a survey of trends, and detailed descriptionsand contact information on marketing companies. For copies of thedirectory call Schlesinger and Associates at (301) 951-7266.

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