If you’re reading this article, odds are you live in a State with a deregulated energy market, and you’re wondering if it is indeed something good for you or not. Energy choice deregulated energy, or the Power to Choose are all different titles given to the same program: one that gives you the power to compare electricity offers and choose the best deal out of them. Well, we’ll break down all significant concerns you might have and will teach you everything you need to know to find the best energy deals in the USA. So let’s dive in!
What is Energy Deregulation?
We’ll make it as simple as we can. Deregulated energy markets give you the power to choose your electricity supplier out of a wide range of retail energy providers. This also means that there are no caps or regulatory protections to the prices, exposing them to the market’s normal fluctuations. As weird as this sounds, this is great for the customers; why? Because as a client, you can compare electricity offers and get deals that otherwise would not exist. We created this video to explain to you how it works more in detail:
The benefits of energy deregulation are many. As a customer, you can enjoy lower energy rates, save money, get better deals as your supplier wouldn’t want to lose you, get to stabilize your rates for up to 24 or 36 months with fixed-electricity rates, and much more. Switching your energy supplier is simple – in theory – you just need to go out there, find an energy supplier, switch and start saving. Well, as easy as this sounds, there’s much more to that than just choosing a supplier. Luckily we’re here to help you.
Questions you need to ask when you compare electricity offers:
If you want to compare electricity offers, there are a few things you need to ask yourself, say, what is the type of rate you’re looking at, is it fixed or variable? What is your current energy consumption? Do you live in an energy deregulated state? Is it a good time to set your rate? And much more. We created this step-by-step process to help you choose a new energy supplier:
We have an entire article about choosing an electric company, in case you would like to check it out. But in this article, we will help you get some light on how to answer those questions.
1. Does your State offer a deregulated energy market?
Before you compare electricity offers, be sure you live in a state where energy is deregulated. So, what does all of this mean? In a word, if you reside in one of these states, you may select your energy supplier, compare power rates, and ultimately make educated decisions that will help you save money.
Deregulation was brought in various ways to numerous states as part of the reorganization of the US energy industry in the 1990s. Customers can select their own electricity and natural gas suppliers as a result of energy deregulation. While several jurisdictions have deregulated their energy markets somehow, no state, except for the District of Columbia, has entirely deregulated all energy services and all consumers. Residents in 26 states now have some say over who supplies their electricity, natural gas, or both.
This is especially interesting when we note that we’re in a country that, based on worldwide primary energy consumption by nation, the United States, used around 88 exajoules of energy in 2020. This is twice as much power as India, which has four times the population of the United States. In a country with such high energy usage, we find that we’ve got the Power to Choose in roughly half of the states.
2. What is the type of electricity rate offered?
Another critical step to compare electricity offers is to understand what is the electricity rate they offer. What you receive and what works best for you will be the one that corresponds to your consumption patterns. Both tariffs are generally readily accessible from various electrical providers. It is up to you to choose which option is best for your situation. So, let’s see how they work:
In a word, this is a plan in which your kWh price varies based on peak season, seasonality, or daylight. These schemes are often governed by demand response and time discrepancies. It indicates that when demand is strong, the cost per kilowatt-hour is generally higher. This peak-load pricing is explained in one of our articles
On the other hand, these plans ensure that no matter what happens in the market (high temperatures, oil prices, etc.), the electricity you pay will remain the same. You will be able to better manage your finances. Learn more about fixed-rate power plans and the benefits they provide.
Here, what is important is to ask yourself whether you want a set monthly budget for electricity when you compare electricity offers. If that’s the case, you should usually go for a fixed-rate contract so you can budget more easily.
3. Is it a good time to get a fixed electricity rate?
The best time to change electricity suppliers depends on a set number of situations. In general, there are 3 usual scenarios when it’s best to switch to a fixed rate:
- When there is lower energy demand.
Energy expenditures tend to be higher during peak demand periods since available energy is scarce. When energy consumption peaks in a particular location, local utilities usually turn to secondary energy sources to meet customer demand. Compare electricity offers and take advantage of low-demand seasons or times, you can see that the energy market prices are exploding lately, so you can fix your energy rate to avoid that uncertainty
- When you move to a new place.
Moving in or out may be the finest moment to switch energy providers and an excellent opportunity to discover a better deal. You must tell your present provider, ideally at least two days ahead of moving. If you’re happy with your current arrangement, all you have to do is tell your provider when and where you’ll be moving. You can compare electricity offers and get overall better deals in your new location.
- Before an extreme temperature season.
The higher / lower the temperatures, the higher the energy demand. During the hot summer months, air conditioners are often used all day and sometimes all night. As a result of the lower temperatures and fewer daylight hours in the winter, our furnaces and lights get turned on more often. This is why it’s usually a good idea to switch to a less costly plan before the winter months start.
4. Shall I use an energy marketplace?
Off course! At Click2Power, we do this research for you, ensuring you end up with the best offer. So if you want to compare electricity offers, to choose a new electric company, make sure you visit us. We will compare electricity providers to make sure we give you:
- The best rates
- Easy enrollment
- Full control of your costs with fixed rates
- No Hidden fees
- Exceptional customer service!
Do you want to learn more about how you can benefit from Energy Deregulation? Feel free to call us now at (833) 680-2025 or fill up the form on our website—one of our energy experts will be willing to help you with all the information you may need!