How Energy Deregulation Affects You

What is Energy Deregulation?

Energy deregulation occurs when competition is introduced into the electricity industry. This is done by allowing customers to choose the company that they want to purchase their electrical power from. Energy deregulation is determined on a state by state basis. This means that some states are deregulated and some are not. The following states are deregulated when it comes to electricity:

Energy Deregulation
Photo: Vincent Desjardins

-New Mexico
-New Jersey
-New York
-New Hampshire
-Rhode Island
-Washington D.C

Legislation regarding energy deregulation will vary depending on the state. Some states, like the ones listed above, have readily accepted energy deregulation as a concept that will benefits both its citizens and its business owners. Other states, however, have yet to realize the benefits of energy deregulation and do not give their residents the right to choose their energy provider.

How Energy Deregulation Affects You

The main way in which energy deregulation affects energy consumers is that it gives them the ability to choose their energy provider. Individuals have the power to research energy providers in their area and pick the best one based on costs and the source of the energy. In most cases, people will be able to reduce the amount of money that they pay to their energy provider every month.

Energy deregulation also gives customers the ability to choose energy providers that are committed to alternative or renewable energy sources. When deregulation occurs in a state, competition in the marketplace increases and monopolies in the power industry are eliminated. This allows for renewable energy providers to make their way into the marketplace. This not only saves you money, but it is better for the planet as well.

How to Choose an Electricity Company

The main thing you will want to consider when choosing a new electricity company is cost. Analyze the average amount they charge customers and compare that to other large providers in your area. You can usually find this information by conducting a simple online search. Government organizations will typically have this information as well. Choose two or three providers that charge the lowest fees.

You will then want consider other factors other than price. What forms of customer service does the company offer? Do they offer online bill payment options? Do they charge any enrollment fees for new customers who sign up for their service? Choose a company that offers great customer service and flexible payment options, even if they are not the cheapest provider in town.

Once you have chosen a new provider, it is often very easy to switch over. Simply notify your old company that you are switching providers. Signing up with your new power company is often as easy as filling out a simple form online. Most states with deregulated energy will allow residents to switch providers with no fees and no disruption to their service.

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