| Enron Energy Services |
Article Index for Enron |
Shopping Enron |
Website Links For Enron |
Information AboutEnron Energy Services |
| CATEGORIES ABOUT ENRON ENERGY SERVICES | |
| enron | |
| SHOPPER'S DELIGHT | |
|
THE BUSINESS PLAN EES's best known area of business was California . Part of their strategy was to use two-way wireless electric meters, which could be Read Remotely and eventually turn air-conditioning and lighting systems on and off by telephone {Link without Title} . Enron bought thousands of these meters as well as millions of dollars worth of wireless air time. Enron Energy Services promised business and home users average annual savings from 5% to 15%. EES spent millions of dollars on advertising to attract customers. This business strategy depended on a large, Deregulated market, and it became clear in the late 1990s that states were not deregulating fast enough. Few meters made it out of the warehouse and Enron employees received Skytel pagers because the company already bought the massive amount of airtime. Enron decided to change its strategy and target businesses, organizations, and corporations with offices distributed around the United States. PROBLEMS Enron Energy Services had problems billing customers and getting the bills to them in the correct amount. It was alleged that they paid customers to sign contracts, to prove to Wall street that energy trading actually was happening. It was also alleged that the company manipulated the California electricity market to increase profits {Link without Title} . After spending on ads and marketing with little return, the company’s operations were in a Deficit of over 500 million dollars. Enron Energy Services was one of the many business units that filed for Bankruptcy with Enron Corporation on December 2 , 2001 . REFERENCE
|