Understanding Energy Deregulation: Benefits of Energy Choice

Energy deregulation offers an amazing opportunity for customers to choose energy providers based on prices and personal preferences, effectively reducing energy expenses. 

Understand the basics of energy deregulation to recognize how energy choice benefits you and your home. 


What is Energy Deregulation? 

Energy deregulation changes the current energy market structure by encouraging competition to prevent monopolies. Competitors invest in power plants and transmission lines for buying and selling energy to customers. Customers choose the perfect energy provider for their home based on varying factors, including rates, terms, and products. 


Energy deregulation continues to grow across the United States with 30 states featuring some form of energy deregulation involving natural gas and electricity. No state offers complete deregulation, but Texas presents the closest opportunity with over 85% of the state able to choose their energy provider. 


Energy markets began deregulating in 1978 when Congress passed the Public Utilities Regulatory Policy Act, which introduced competition into the previously monopolized energy market. Afterward, states gradually deregulated during the 1990s until a retail market for electric suppliers was formed. 


Energy Deregulation vs. Energy Regulation 

Energy regulation presents the alternative to energy deregulation. Regulated energy markets are monopolized by utility companies. Energy prices and processes are controlled by one governing body, meaning only local utility companies are able to sell energy to customers. 


The primary difference between energy deregulation and energy regulation is a customer’s power to choose. Energy regulation customers are given one energy provider featuring one price and product, meaning a customer’s choices are entirely eliminated whereas energy deregulation offers multiple providers, allowing a customer to choose the right price and product for them and their home. 


Benefits of Energy Deregulation

Energy deregulation offers numerous benefits for customers. 


Ability to Choose 

Energy deregulation grants customers the ability to choose an ideal energy provider for their home. Deregulated energy markets display multiple providers featuring varying rates, terms, and products, meaning customers create customized energy solutions for powering their home. 


Find energy providers by researching different Texas electricity companies. Select an option matching your budgetary needs and personal preferences. Additionally, you never forfeit your right to choose after selecting an energy provider. If you become interested in another provider or price, simply understand your current contract and contact a new provider to make the switch. 


Energy deregulation offers you the ability to choose your energy provider, increasing your control over your home and budget. 


Excellent Savings 

Energy deregulation gives customers excellent savings. Deregulated energy markets present various energy rates, allowing customers to choose an affordable rate for their budget, saving an average of 20% on yearly energy expenses. 


Energy providers also offer payment plans, which grant customers greater control over their energy bills. Payment plans generally involve two options:

  • Fixed Rates: Contracts are used to secure an energy rate for a period of time, usually lasting anywhere between 6 and 18 months
  • Variable Rates: Rates fluctuate with the market based on demand to lower or higher prices


Choose an energy provider by calculating your current energy rate. Find a provider offering a cheaper price at a fixed rate to earn excellent savings. 


Competitive Market

Energy deregulation encourages competitive markets, which directly benefits customers. Customers are able to easily change providers, meaning competitors are required to offer preferable rates, terms, and products to earn and retain customers. Deregulated energy markets also create better customer service because competitors are concerned about losing customers. 


Energy deregulation guarantees you lower prices and better customer service due to the increased competition between energy providers. 


Environmentally-Friendly Opportunities 

Energy deregulation provides an environmentally-friendly opportunity for customers. Traditional forms of electricity, specifically fossil fuels, emit carbon dioxide and other harmful gases, releasing pollutants leading to global warming. Green energy offers an eco-friendly alternative for decreasing pollutants to improve air quality and public health as well as slow global warming. 


Deregulated energy markets allow customers to affordably access green energy, which usually involves an expensive investment for equipment and maintenance. Generally, energy providers include a percentage of green energy offered by their business, allowing environmentally-conscious customers to purposely save the environment. 


Create a more sustainable home by choosing a green energy provider. 


Recognize the benefits of energy choice by understanding energy deregulation.