What is Electricity Deregulation?
The purpose of electricity deregulation is twofold:
- increase competition in the electric utility industry, thus giving consumers more choice;
- reduce electric rates and lower the electric bills of home- and business-owners.
With no industry competition, local utility companies were previously able to get away with elevated electric rates. This resulted in disgruntled customers and, eventually, the government stepped in to reduce electric rates by deregulating the industry.
Now, consumers in participating states can switch to a low-cost electric supplier and possibly lower their electric bill each month.
It’s fast, easy, and free to switch suppliers. Most independent electric suppliers have a short online form that you can fill out in less than 10 minutes. After you complete the form, your new electric supplier will contact your local utility company and notify them of the transfer in service. Once you have confirmed the transfer, you’ll receive the new electric rate in a few billing cycles. It’s that simple!
Switching electric suppliers is 100% free, and you will not experience an interruption in service during the transition. What’s more, electric deregulation customers can now have more say in where and how their electricity is produced (e.g. Does the supplier use renewable energy sources, such as solar or wind, to produce the electricity?). In this way, electric deregulation can not only lower your electric bill, but it can also help protect the environment!