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Answering Your Questions About Energy Deregulation

May 20th, 2025 By Casey Thornton

On this page:

  • What is Energy Deregulation?
  • How Does Energy Deregulation Affect the Cost of Energy?
  • How Do I Know Which Provider is Right for Me?

What is Energy Deregulation?

Energy deregulation means that customers can choose who provides their electricity or gas, just like choosing to go to different fast-food chains instead of eating at McDonald’s all the time. Before deregulation, one company provided your power and you had no say in the matter. Now, consumers have many choices when it comes to selecting an energy provider. You can even select an alternative supplier for both your electric and natural gas services.

How Does Energy Deregulation Affect the Cost of Energy?

Since electricity costs are not regulated in Texas, it is possible for Dallas electricity rates to increase or decrease. The Public Utility Commission has rules in place requiring utilities to inform customers if they plan on increasing their rates. If you aren’t notified ahead of time about planned rate changes, you could face an unexpected rise in your bills at any time.

Energy deregulation requires gas companies to be licensed and follow regulations every step of the way. If an oil company isn’t following these regulations or providing good service, there may be consequences such as losing the license needed to sell natural gas. That’s why it’s important to stay informed about the companies you choose, especially when you purchase your energy supply from someone other than your utility company.

How Do I Know Which Provider is Right for Me?

One of the benefits of deregulating energy in Texas is that customers are free to compare prices and make their own choices about who they want to provide their service. You have the power to choose Texas energy plans for your home. Customers can evaluate providers based on cost, customer service track record, types of available plans (fixed rate, variable rate), green energy offerings, or any combination thereof. If price isn’t the most important consideration when choosing an alternative supplier, then there are many ways to buy 100% renewable energy. You may also want to consider enrolling in a home equity plan.

Energy deregulation in Texas means that there are many choices available when it comes to selecting electricity or natural gas provider. The amount of available information about these companies may seem overwhelming, but by understanding how deregulation works, using available resources, and choosing your providers carefully, you will be able to make the best decision possible for yourself and your family.

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