Understand Energy Deregulation and How it Can Benefit You

Energy deregulation refers to the legislative rulings that affect many energy markets across the United States. Before these legal changes, consumers were limited to purchasing their energy supply from the utility at rates regulated by state utility commissions. Regulated rates fluctuate with the market value of the commodity and can vary depending on market demand. Now, energy deregulation has created competition among energy retailers for natural gas and electricity supply, giving consumer more options for their energy services than just the utility.

Energy deregulation brings you new privileges

It’s important to understand energy deregulation because it has a direct effect on you as a consumer. Energy deregulation changes the way the energy market is perceived, creates competition and gives consumers the power to choose. It does this by taking the facets that make up the energy business and separating them, creating an open market for supply plans from energy retailers that offer competitive energy rates. Unlike the many regulated energy markets in North America, you have the freedom to choose from energy retailers that offer competitive energy rates in your area or continue with your utility’s regulated rates.

What are competitive energy rates on supply?

In a deregulated energy market, energy supply may be purchased from competitive energy retailers. These are third-party companies that purchase energy on the wholesale market and sell it to consumers. Delivery and/or generation rates continue to be charged by utility electricity providers and regulated by your state utility commission because no matter where you buy your energy supply, your utility remains the same. Most utility electricity providers own the natural gas and electricity distribution systems and are therefore still responsible for repairs, maintenance and energy delivery. Competitive energy rates on supply are charged for the amount of energy you use. These rates are exclusively available in markets with energy deregulation and come in several forms. Keep in mind that plan availability varies from market to market.

  • Stable-rate plans are a set rate per energy unit. Your energy usage may vary from month to month but the unit rate you pay will remain the same.
  • Variable-rate plans follow the market value of the commodity and can change. You can take advantage of market lows but brace yourself for market highs.
  • Indexed-rate plans often give you a low introductory supply rate then may set up a price cap for the remainder of your agreement.

How ElectricityProviders.org can take the weight off

Now that you know about energy deregulation, you’re probably a bit overwhelmed but don’t fret – we’re here to help! Our team of energy experts can help you find the right plan for your home or business. Browse ElectricityProvider.org if you’d like to understand more about what’s available in your deregulated market but be sure to give us a call so one of our energy experts can help you figure out what will work for your energy needs. You have the freedom of deregulation. Be sure you’re getting the right energy plan for your home or business!