What’s Deregulation and How Does It Save Me Money?
Posted On: November 7, 2019It’s a word that’s the key to your energy, and as more states discuss deregulation, we want to keep you informed on what it is and how it affects you as a consumer. So let’s breakdown the tenet that’s revolutionizing energy in America.
What is it?
The easiest way to think of deregulation is simply that it gives you the option to choose your energy provider. Deregulation restructures the existing energy market in hopes of preventing monopolies by increasing competition. It works through reverse auction, meaning that each company offers to sell its energy at the lowest possible rate. Independent agencies then purchase the energy needed to suit the demand they predict and set the best rate for their customers.
Because of this open market, you also have more choice in the type of energy plan in which you enroll, like a variable or fixed rate plan. Ultimately, it gives you more control by allowing you to shop around for the lowest rate.
Why is it important?
Deregulation promotes competition among energy firms and motivates providers to offer excellent customer service. It also empowers energy efficiency by producing more informed and conscientious customers.
There are now 17 states with deregulated energy markets in the United States, though it varies from state to state. The common trend is, if your state or area is deregulated, then chances are you’re paying less for your energy.
How to advocate for it
If you’d like to get involved, call your local representative and let them know you support energy regulation or join a business group that’s dedicated to deregulation and make your voice heard.