TXU Energy
TXU Energy has raised suspicion regarding their earnings in 2005. TXU, Texas' largest Energy provider, has caused a significant increase in energy prices across the board by inflating their own prices up to 15%. TXU was said to have made over $20 million on inflated prices in the year 2005. State investigations by the Public Utility Commission support the allegations on TXU and as a result TXU will be required to pay $210 million in fines. As stated by PUB:
"The alleged market abuse was observed between June and
September of 2005, according to the Public Utility Commission. It wound up
costing consumers $70 million and earned the utility $20 million in extra
profits, "
TXU serves almost 3 million customers, all in the north Texas metroplex area, and has set a plan in motion to decrease electricity rates by 6%. This plan would reach almost a third of TXUs' current customer base. TXU has a month to respond to PUB's recommendation before they have to go up again the state commissioners.
Analysis:
MSNBC tends to tell all of the facts, ugly or otherwise. TXU tends to leave out important facts that the community and their clients would want to hear. Eliminating important information makes TXU look even more guilty then they already are. The public feels the need to go elsewhere for complete and thorough information. That is not a good way to keep your already existing unhappy customers. Also TXU is not addressing the price inflation in their media release. Instead they are praising the company for decreasing their already increased prices.
TXU's response tends to sound a little unrealistic because they don't mention their reasoning for the sudden decrease in price. They make it look like the companies intentions are to make their services better than their competitors rather than just doing the right thing. As stated in TXU's news release:
"We are providing our customers with lower prices, price protection unmatched by
any competitor and appreciation bonus payments,"
TXU really needed to address the alligations and what they are going to above and beyond what PUB is requiring. This would show their clientel that they are making an effort to improve their customer service without someone holding their hand!
