What Is Energy Deregulation?

Texas energy deregulation gives you the ability to chose your energy provider, plan, and form of energy you are using. It is the reason you are able to shop for energy at all, and it gives you the power to switch your plan for any reason at any time.

Why Does Texas Energy Deregulation Matter?

As I said earlier, energy deregulation provides you with flexibility and the power of choice. The reason this is so important is that it gives you the ability to find plans specific to your needs, switch your energy plan for any reason, and search for the most affordable and cost-effective options. Regardless of the energy supplier you use, your utility is still responsible for supplying your energy. They will handle any switches and changes in your energy plan and make sure there are no problems or disruptions. They will also continue to deal with all the details and will take responsibility for any issues you may encounter.

Choices Available to You as a Texan


Fixed-rate plans provide stability and consistency. The market is always fluctuating and as a result, so are energy prices. With this plan, guarantees you a fixed price point that does not change when the market does. Because of this, it is a popular plan and a good one for many people. With this option, they do not have to worry about their energy prices suddenly shooting up. The downside to this plan, however, is consumers do not benefit from a decrease in energy prices. This option is one that typically requires a contract and is likely a long-term deal.


Variable-rate plans, as you may guess, are the opposite of fixed-rate plans. This option provides changes in energy prices with the changes in the energy market. Since the market and energy prices are constantly changing, energy prices could fluctuate monthly for someone with this plan. Unlike the fixed-rate plans, these plans are typically short-term and do not require a contract.

Indexed Rate:

Similar to variable-rate plans, indexed-rate plan prices can fluctuate monthly. The standardized index is what causes these changes. By choosing this plan, customers can follow this index and know what is happening with their energy.


A prepaid plan does not require a contract, deposit, or credit check. Because of this, it is a popular option for many Texans. With this plan, users pay a certain amount up front and are notified throughout the month on how much energy they have used and their remaining balance.

Green/Renewable Energy:

Any of these plans can use renewable energy. The difference between renewable energy and other energy sources is that renewable energy is easily produced and is not finite like other energy sources. Because of this, this form of energy is a great option that makes it easy for anyone to help the environment.

Home Services:

Several available home services strive to help customers save both energy and money. These services could include HVAC installations, roof repairs, window upgrades, and more.

Renewable Energy

There are plenty of renewable energy options in Texas. Several plans use a percentage of their energy from renewable sources, but renewable energy entirely supplies some plans. Some renewable sources include hydropower, wind power, and solar power. These systems take energy from infinite sources and convert it into an energy that can be used in day-to-day life.

State Energy Deregulation

Deregulation is taken on by each state individually. Some states are fully deregulated, while some are only deregulated in some areas, and others have yet to become deregulated at all. Texas is currently the largest deregulated energy market in the United States.

Deregulation gives you the power of choice. You can choose an energy plan that works for your specific needs and price range. This opportunity for choice has created competition for affordability and efficiency in the market. This opens up several options for consumers to find great plans for great prices. This freedom is one you should not take for granted because it is something not everyone has.