The Benefits of Energy Deregulation

Now, I know that energy and cell phones are two very different subjects. But I thought it would be interesting to compare energy deregulation to how you would shop for cell phone plans.

Today, when buying a new cell phone, you are presented with many different options. Through flexible plans, discounts, and multi-plan pricing different phone carriers compete for your business. And you – as a consumer – can shop and choose the one that you feel best fits your phone needs.

Well, just imagine if you had no choice as to what phone carrier to use, or what plan you were on. Let’s imagine that in the state by state, laws determined what phone carrier you HAD TO use in order to have a cell phone and that you had no choice as to what phone plan you had.

We could call that “phone regulation”. 

In many U.S. states, that’s how energy is. It’s regulated, meaning, the utility supplies and sells you energy and you don’t have a choice as to where to buy it from.

However, some U.S states saw this as a monopoly. So, they changed the laws and regulations concerning how energy is bought and sold, allowing retail energy providers to offer electricity and natural gas directly to you – the consumer.

If you live or own a business in a deregulated energy state, you can choose where to buy your electricity or natural gas from. Retail energy suppliers in-turn, compete for your business by offering competitive rates and different kinds of plans.

If you choose to buy your electricity or natural gas from a retail energy supplier, the electricity or natural gas itself will still be delivered to you through the local utility’s infrastructure, which is to say wires and pipelines. But you’ll be paying less for the electricity or natural gas itself.

Finding better energy rates is one of the biggest advantages of energy deregulation, but it’s not the only one. Now let’s take a look at the main benefits the energy deregulations offer to your business: