Energy Deregulation simply opens up the marketplace for new energy suppliers to offer choices. Deregulation allows consumers to choose who they buy their power from, just as they can choose their long-distance company. This choice creates a competitive marketplace in which each energy company is working to provide the best product. Creating competition drives prices down and improves quality.
Since it began in the late 1990s, deregulation of energy has created opportunity throughout the marketplace.
Under deregulation, each part of your energy service is broken down into separate pieces that are provided by different companies.
Delivery of the electricity to your home as well as all necessary service is still provided by your local utility, making it possible for you to still have safe and reliable electricity in your home. In most cases, however, your local utility does not produce its own power- it buys power and re-sells to you….if you chose to buy from them. That’s where alternative suppliers come in.
Electric suppliers are licensed by state and federal agencies and are not in competition with the local utility. The local utility makes money on the delivery and service of electricity- not on its production- so the utility company can easily and profitably support customers who choose to switch suppliers.
Deregulation means you can shop around to find the product that’s best for you. You have a choice. Why wouldn’t you make the choice that saves you money? There are also choices that help the environment. The choice is yours.