Energy deregulation offers customers the unique opportunity to control their energy expenses by choosing their energy provider. If you live in a deregulated energy market, understand the concept and process of energy deregulation to access the money-saving benefits.
What is Energy Deregulation?
Energy deregulation involves the restructuring of the current energy market to prevent monopolies by increasing competition. Competitors invest in power plants and transmission lines for buying and selling energy, meaning customers choose energy providers for their home or business based on rates, terms, and products.
Energy deregulation continues to grow across the United States with about 30 states offering a form of deregulation regarding natural gas and electricity. No state provides entire deregulation, but Texas features the closest opportunity with almost 85% of the state able to choose energy providers.
Energy deregulation contrasts energy regulation by granting customers the power to choose. Regulated energy markets are monopolized by utility companies, who solely own infrastructure and transmission lines as well as determine energy rates, eliminating a customer’s control over their energy needs.
Benefits of Energy Deregulation
Energy deregulation offers amazing benefits for customers, including:
- Saving Money: Compare rates to choose the cheapest option and reduce energy expenses every month by over 20%.
- Securing Payment Plans: Sign a fixed-rate contract to budget better and avoid price fluctuations during high demand.
- Encouraging Competition: Creates competition between energy providers to guarantee better customer service and lower prices.
- Increasing Awareness: Earn a conscious awareness of your energy usage to develop better energy habits and avoid wasting electricity.
- Improving the Environment: Allows customers to affordably choose green energy providers, effectively reducing your home or business’s carbon footprint and slowing global warming. This is a great addition to energy-efficiency efforts like natural lighting, programmable thermostats, and energy-efficient appliances.
How to Change Energy Providers in 3 Easy Steps
Energy deregulation allows customers to save money by simply changing energy suppliers. Here are 3 easy steps for changing your energy supplier:
1. Determine Your Current Rate
Determine your current energy rate to completely understand your energy expenses. Review your previous monthly bills and yearly statements for energy usage. Calculate your average energy rate for kilowatt-hours of energy based on the information. Identifying your current rates assists in guaranteeing you choose a better energy deal.
2. Compare Energy Providers
Compare energy providers to discover the perfect energy option for your home or business. Compare energy providers by reviewing four main factors: Supplier reputation, energy rate, payment plan, and product type.
Reputation speaks to a supplier’s trustworthiness and overall quality. Deregulated markets mean searching through tons of suppliers using shifty marketing tactics or disguising hidden fees. Check an energy provider’s reputation by reading reviews to ensure they’re offering upfront and realistic deal.
Rates refer to an energy provider’s price for kilowatt-hours of energy. Deregulated markets allow suppliers to choose their rates, meaning numerous rates are available to match your budget. Reference your current rate calculations to only consider providers with better rates than you’re paying now.
Payment plans and contracts change based on energy providers. Generally, payment plans are available at either fixed or variable rates. Fixed rates guarantee you pay the same amount during the length of your contract, meaning you avoid price fluctuations during high demand and you’re able to create concrete budgets. Variable rates shift higher and lower depending on the current market. Choose a fixed rate for your energy expenses to receive peace of mind.
Lastly, product types include beneficial features, such as green energy options. Green energy offers a clean, renewable alternative to traditional forms of electricity, specifically fossil fuels, to improve the environment. Energy providers display their percentage of green energy, so environmentally-conscious consumers can affordably access green energy.
Compare energy in TX by researching reputations, rates, payment plans, and product types to successfully change energy providers.
3. Change Energy Providers
Change energy providers once you’ve located the best option for you. Provide your utility account number, and create a contract outlining your rate and payment plan. Contact your old energy provider, either you or your new energy provider, to inform them of the switch. Lastly, receive your new, reduced energy bill to officially change providers and receive the benefits.
Save money by following these 3 easy steps for changing energy providers.
