What You Need to Know About Energy Deregulation

Energy deregulation is taking place in many states around the nation as consumers move away from traditional utility companies and switch to alternative energy suppliers. It is what gives you the power to choose an energy plan and provider for your home and compare your options through platforms such as ours, at Energy Outlet.

Energy deregulation gives people a choice of providers and allows consumers to compare prices, meaning that they can shop for something better than their local monopoly or choose green options like wind and solar power. Energy deregulation does not mean that your energy service will change instantly or that your electric company will disappear tomorrow.

Energy deregulation typically takes place over the course of a few months as people switch over to different energy companies. Energy deregulation can mean that the process of switching providers comes with additional complications and people may want to consider having help from a third party.

Energy deregulation provides consumers with more options but can also lead to confusion, so here we provide you with answers to some common questions about energy deregulation:

History of Energy Deregulation in Texas

In the 1990’s Texas lawmakers, unhappy with the rates and services provided by traditional utilities companies, passed legislation to deregulate electricity in some parts of the state. Energy deregulation started on April 1, 2002 as a result. Energy deregulation allows consumers to choose which company provides their electric service as opposed to utilities, who are forced to provide service to everyone in certain areas of the state. Energy deregulation does not apply to everyone across Texas, only certain areas. Energy deregulation allows customers to choose either a retail electric provider or stick with traditional utility companies.

Consumer Benefits of Energy Deregulation

People who are interested in switching energy plans are still able to switch their energy supplier as often as they would like, but energy deregulation provides more options for those who switch. Energy deregulation allows people to compare prices and services from different providers instead of being told which company is allowed to provide their electric service.

Energy deregulation does not come with a price increase, although some people may end up paying more or less depending on what company they choose. Energy deregulation also means that customers have more options for green energy sources, with companies providing 100% renewable energy service to people in areas of the state where they are available.

Energy deregulation does not mean that your local monopoly will disappear. Energy companies need to maintain the infrastructure of power lines and so the electric company will still exist even if you switch over to an alternative energy supplier. Energy deregulation means that you have a choice when it comes to whose electricity you use, but you still get to keep your local electric company in case of emergency or if you have problems with your alternative energy supplier.

Green Energy and Deregulation

Energy deregulation means you can switch to a completely green energy plan, meaning that you will be using solar power or wind energy instead of traditional power sources like coal or natural gas. Energy deregulation opens the door for consumers to take advantage of greener power sources, although in some cases alternative energy companies do not offer 100% green plans and will use a percentage of traditional power sources. Energy deregulation allows people to choose options that are better for the environment but may have a higher price tag attached to them. Energy deregulation does not mean that you must switch to a green plan if you don’t want to.