Ethical Electric Fires Up

I’ve been tracking a number of articles on the start-up Ethical Electric - a retail energy provider set to launch this year. The company is the vision of Tom Matzzie, formerly Washington Director for activist organization MoveOn.org.

The retail energy sector is full to bursting with undifferentiated competitors, and the buzz at industry conferences is all about new business models, the value of brand, and adding products and services. A key opportunity is in niche marketing, and Ethical Electric is one of the first players to enter the fray, although they are likely not looking at it like that.

Instead, their value proposition is formed around a desire to put coal-fired plants out of business. They will offer 100% “clean and green” wind and solar from local sources. They say that a portion of their revenue will go to causes their customers vote on supporting, Plus, their website says, “We help you save energy, save money and do your part to change the world.”

The size of the green energy buyer market is believed to be relatively small today. A lot of the industry insiders I’ve talked to believe consumers simply won’t pay more for green energy. But with the type of inflammatory language and guilt-inspiring messages Ethical Electric seems prepared to use (not to mention the social media marketing savvy of Mr. Matzzie) it will be interesting to observe their tactics. (Indeed, the tone of their website copy is every copywriters dream.)

They may have a bit of an organic search issue, though. Off-the-Grid advocate Dennis Haefner’s site – Ethical Energy – is easily confused with Ethical Electric, as is the UK not-for profit The Ethical Energy Group.

Ethical Electric is one of the growing number of Benefit Corporations springing up. These companies are specifically formed to create measurable public benefits and fund charitable or social causes. Benefit Corporations have the potential to enjoy near-instant credibility and viral growth among consumers disenchanted with the practices of traditional corporations. Learn more about them here.