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But with gas supplies tight, prices appear unlikely to drop soon, analysts say.
And as long as capacity remains tight, prices can be nudged higher.Yet last winter showed how quickly customers will take offence when carriers put a foot wrong.
Spot electricity markets work poorly when supplies are tight; prices can rise to extraordinary levels and can be manipulated by suppliers.
"It will be tight; prices will be high," said Charles T. Maxwell, senior energy analyst at Weedon & Company in Greenwich, Conn.
Weaning India off Iranian oil is particularly difficult now, as supplies are tight, prices are high and India's government is eager to cut subsidized prices its citizens pay for petroleum products.
That meant that when supplies got tight, prices rose, sending a powerful economic signal to customers -- especially big businesses that had the most to lose -- to cut back energy use.
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State Senator Steve Peace, an architect of deregulation who is calling for new controls on the industry, said tight price caps were necessary in the short run because generators of electricity had too much leverage to set prices.
The company, based in Grand Rapids, Mich., said it would also cut 200 to 300 salaried jobs to improve profits as it struggles with a slowdown in sales and with tight pricing.
The Maytag Corporation, a leading maker of home appliances, said today that its third-quarter profit fell 27percentt, as expected, after it lost business from two major retailers and struggled with tight pricing in a slumping major appliance market.
With profits constrained by tight pricing on supermarket shelves, firms will focus more and more on extending a few superbrands with lasting appeal, subsuming existing products into them and trying to improve sales value rather than volume.If they do, it will continue a trend towards emphasising established brand names instead of new ones.
However, for the most part those bid wars are in a very tight price range band and the competition there isn't being felt in most of the rest of the market.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com