Energy Deregulation – What It Means for You and Your Business
Most people have heard about energy deregulation, but very few understand what it means to them. Energy deregulation means that residences and business may now choose their “electricity generation supplier” (EGS), rather than their local (or default) utility company.
In the past, local utility companies were the only choice for energy supply. However, under the energy deregulation rules, every consumer of electricity now has the right to choose who supplies their power and may now shop between energy suppliers in their service area.
Energy deregulation has essentially opened up electricity generation to competition in several states, including CA, TX, IL, NY, NJ, PA, and MD. The opening up energy markets to increased competition between energy suppliers’ contributes to driving down energy prices.
This is very good news for residents and small business owners.
The power to choose your energy supplier is a substantial benefit that every consumer should take advantage of. However, many people simply do not understand what energy deregulation is all about, or why they should even bother.
The answer is simple-Smart shoppers always want to save money and get better value for the goods and services they require. There are essentially three parts to providing electric service to consumers: generation, transmission and distribution: When you switch energy suppliers, you are only choosing the company that generates (or supplies) your electricity.
The transmission and distribution of your electricity will still be handled by your local default utility company. There is no-risk whatsoever if you choose an energy supplier who offers lower rates!
NO CHANGE: Nothing at all changes with the way your energy is delivered to your home or business. Your bills are still delivered and paid just like before. The only thing that changes is the lower rate charged by the electricity energy supplier (EGS) you are using.
NO SERVICE INTERRUPTION: There is absolutely no interruption in service at all.
SAME ENERGY DELIVERY: Energy is provided to your business the same as before, regardless of which energy supplier actually provides the electricity to the local distributor.
SAME LOCAL SERVICE: The local delivery and service continue in exactly the same way, but you will now enjoy a lower monthly rate for the energy. This means that if you need to call for local service, everything stays the same.
In summary, deregulation has opened the energy markets to competition. While the local distribution and service portions of electricity provision remain the same, the power generation of electricity can be accomplished by competing suppliers, which has made it possible for consumers to shop for a better energy price.