When you buy energy or talk about who you buy power from, you’ve probably heard the phrase ‘utility’ or ‘electricity suppliers’, right? Although people mistake these words with one another, thinking they are both energy suppliers, they represent pretty distinct companies with really different roles.
Energy deregulation gives you the power to choose from a wide range of electricity suppliers. Picking your energy choice now, will allow you to select from where you buy your energy. It is a crucial decision, affected by knowing how energy businesses work and their role in generating and delivering the electricity you consume. Learn more about the difference between electricity suppliers, utility companies and energy generators, and know how to make the best decision for your home’s energy consumption with today’s blog.
What are the 3 main types of electricity companies out there?
If you’re like most of us – and we bet you are – you’re willing to get control over your monthly energy bills, are we right?. While it may be relatively easy to understand some services like water, internet, tv, and phone, fairly common services, other services such as retail electricity suppliers might not be that easy.
To give you some context, when energy deregulation started to happen, it shifted the way energy entities – mostly monopolies – used to work. 3 new actors were emerging on the market, and they had particular rules as to how to act and their scope. We are here to provide you a better understanding of the distinction between those 3 new actors and their roles so that you know who is offering your services and how they are doing it.
But first, let’s take a look at how this works with a small video:
So now that you have some idea about how they work, let’s get more in-depth on how they work:
1. Generator company
Electricity is produced from many resources in the US; among the most common, you will find natural gas, coal, and nuclear power. However, you will see an increasing trend growing towards electricity production through renewable resources like solar and wind.
The power generator is the owner and operator of the power stations. They are selling electricity to the liberalized energy market. They must be registered within the Public Utility Commission and comply with the regulations of the market. If you want to fully understand how energy generation works, check out our blog post.
2. Utilities (Transmission and Distribution Companies (TDU))
This is what you know as your local service provider. They own, operate, and maintain poles and wires, including power transportation from the plant to the consumers. They’re still regulated, and they’re the ones you should call in case of a power outage.
3. Electric retail suppliers (REPs)
Electricity suppliers are the part of the equation that is deregulated, its aim is to buy wholesale electricity from power generating firms and to sell it again to the final customers – you -. These firms must be registered with the Public Utility Commission and are accountable for energy supply.
Electricity suppliers must be authorized to serve the buildings in deregulated marketplaces with retail electricity and/or natural gas contracts. They vary from utilities since they have nothing to do with energy transmission and distribution. The overlap between both objectives is to provide consumers with energy. They directly market and sell their supplies of energy and gas to consumers under contracts.
If it is not that clear, we invite you to visit this fantastic explanation from the EPA to show you how electricity works.
How to compare electricity providers and get the best deal?
Now that you know who electricity providers are and their function in delivering you affordable and reliable electricity, your next thinking might be – all right, since I have the power to choose, how do I choose the right one?. Although the actual switching procedure is straightforward, you should not do it in a rush. Taking your time will ensure you get the best deal.
How to switch electricity providers?
Keep reading if you don’t want to wait until next month to get an expensive energy bill. We already talked about how, by state legislation, you have the power to choose your electricity supplier. But how does this work? The answer is, it is more simple than you think. You are entitled to determine and select how much you will pay for your energy consumption.
At Click2Power, you can select a plan that matches your needs at a fixed rate electricity from multiple energy providers. No more surprises, and have your monthly expenses entirely under control.
Our enrollment process to switch energy providers is straightforward:
It doesn’t have to be a terrible experience to pay your power bill each month. Thanks to the deregulation of energy, people in more than 15 US states have the power to choose a better, more competitive price. Switching not only saves you money on your monthly bills, but also has enticing perks and advantages.
If you don’t know how or where you can switch to think about changing power suppliers. We are here to help. At Click2Power, we want to offer you the opportunity to choose from different energy providers to control your monthly energy bills. You can also decide how your electricity is produced. By selecting the best offer plan from your energy providers with us, you will enjoy a fixed rate, the plan features, and service terms that best suit your lifestyle.