Do you know what Energy Deregulation is? Whatever your reply is, we are sure you are going to like this article. We will guide you through some facts to better understand energy deregulation. It is legislation where your state makes you the leading character and gives you the power to choose your energy provider.
But where does this all come from? What’s in it for you? How to get the advantage of it? Let’s unveil all that it has to offer!
1. Understand what energy deregulation is
Energy deregulation is the removal or decrease of state regulations on the energy market. Electricity deregulation means that you can have the power to choose your electric power supplier and to compare electricity costs. Check out this cool video we made to make it easier for you to understand it:
In short, the deregulation of energy is the same as other utilities’ – from mobile telephones to internet services. It is to remove the restrictions to new suppliers, to be able to provide a certain service. In energy, it provides an open market to shop and choose energy suppliers and electricity rates for each one’s needs.
Whilst deregulation is becoming increasingly prevalent across many states, many consumers who live in those markets don’t know much about it. Sounds familiar? Well, if you haven’t heard of it before, don’t worry, you’re not alone. Most customers don’t even know they have the power to choose.
2. See if your state allows you to have an energy choice
Now many states offer the power to choose to their inhabitants, see this map from the US Environmental Protection Agency. All the states on blue are states that have a retail competitive electricity market.
We have great news you live in states like Connecticut, Delaware, DC, Illinois, Maryland, Massachusetts, New Jersey, Ohio, or Pennsylvania. With Click2Power, you can exercise your power to choose between different energy providers a plan that suits your needs at a fixed rate. No more surprises, and get complete control of your monthly costs.
Source: US Environmental Protection Agency
3. Know the difference between fixed and variable electricity rates
Now that we know you’re eligible to enjoy the perks of energy deregulation, and you’re choosing your energy supplier, let’s look at the things you need to know when you do it. The first one is knowing the difference between a variable and a fixed-rate electricity plan – If you don’t know, don’t worry we have a whole article explaining it.
If you live in one of the above states, and you haven’t changed your energy supplier chances are you’re on a variable rate. How can you check this? Talk to your utility company and they can walk you through the details. If you don’t want to call, check your energy bill, all the details should be there. We will briefly explain what these rates mean.
- Variable rates
On these electricity plans, your kWh price adjusts itself to the offer-demand market. Meaning if there are peak seasons or times your rate will fluctuate accordingly. To understand how peak pricing works check out our article about it. In the long run, variable rates can make it difficult to budget for expenses and forecast monthly costs.
- Fixed rates
You will secure a rate through the length of a certain contract term. On these electricity plans, your kWh price adjusts itself to the offer-demand market. It will ensure that whatever happens in the market, the kWh price will remain the same. If you choose a fixed rate you can rest at ease, because knowing exactly what you pay per kWh will give you full control over your monthly payments.
Energy Deregulation goes further than just having the power to choose a provider. It is also the ability to decide what type of plan you have, the rates and the contract terms that suit your needs.
4. Understand your current electric bill
Now that you know more about energy deregulation itself, let´s move forward to your current electric bill. If you want to take advantage of energy deregulation one of the key points is to understand your bill, your current costs, your billing cycles, and the delivery – supply charges of your bill.
Once all of that sorted out you can start comparing your current electricity rates with the previous ones. You will find out if you’re on a variable rate or on a fixed rate plan. You can also check if your current tariff with the one the REPs are offering to see if they’re competitive or not. Just remember most of the times your rates are expressed in Dollars and the ones of your REPs are in cents.
5. Shop around to get the best rate
One of the key points about energy deregulation is that it gives you options for the supply portion of your energy bill. In a deregulated market, by law, local utilities cannot benefit from energy supply, but only from energy delivery.
Local utilities have no incentive to lower the price of electricity or natural gas for consumers. Therefore, these utilities simply set a “standard offer”, which is the price paid by all consumers who did not choose a particular provider. Energy deregulation creates competition among energy suppliers, which leads to better prices for end-users.
Thanks to the opening of the market, companies like us started to appear on the spectrum. You can go to each one of the REPs available in your state to compare their electricity costs – which will take you a long time. Or simply go to our website, fill up a form with some basic info about your energy consumption and get the best offers out there that match your needs. All with just a couple of clicks. Sweet huh?
At Click2Power, we do this research for you, making sure you end up with the best offer. We 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!