Energy deregulation is a great way to cut energy costs for your home. But, energy deregulation isn’t new to the United States. In fact, it’s been around since 1992, when the Energy Policy Act was enacted. When that happened, it opened up the energy sector for wholesale energy competition. Before that, energy in the U.S., including the price, was regulated by the government.
What energy deregulation means is that consumers have greater control over prices and sources. Here are 4 reasons why you should consider taking advantage of energy deregulation.
How to Take Advantage of Energy Deregulation
Choose Your Own Energy Supplier
Choice gives you power, and it’s the basis of the American economy. If you live in one of the 16 U.S. states where deregulated electricity markets are in place, then you get to help bring down high energy prices. Beyond the cost-saving, when you have a choice, it just feels good. That is especially true when competing companies have vastly different prices and policies.
The good news is, companies like Power Setter help you compare and get quotes from the options available to you. Head over to https://www.powersetter.com/ to find out what’s available in your location.
Competition Brings Lower Prices
When you choose your energy supplier you help influence prices. For instance, when there was only one provider from which to choose, they could set their prices as high as they wanted. However, with energy deregulation, third-party suppliers have the incentive to find less expensive sources of power. Then, those cost savings are passed on to the consumer.
Moreover, with energy deregulation, power companies have to contend with the competitive rates of third-party suppliers, or they will naturally lose many customers. But why wait for your power company to catch up when you can switch to a third-party supplier and take advantage of lower rates?
Green Power • Renewable Resources
Beyond the competition for cost-savings, companies now have to keep up with a multitude of customer expectations. One major thing that consumers in America want is green power, and with energy deregulation, it’s growing more popular than ever.
Green power is an umbrella term for energy that comes from renewable resources as opposed to the finite fossil fuels found in the earth. The technology for harnessing the residual power created by the sun or the force of the wind has been around for a very long time. But until now, there has been little initiative for power companies to shell out the money for new infrastructure to implement those technologies.
Variable Rates • A Word of Caution
So, you might be pretty content with your power company as it is, and that’s perfectly fine. However, some suppliers have caught on and now offer competitive prices. But, now the customers also have to learn about variable rates. Variable rates mean your power prices will vary throughout the day and sometimes the seasons.
One important thing to note is that variable rates are about supply and demand. In the evening when most families come home from work or school, there is naturally a spike in power use. Of course, the same principle applies when heating and cooling systems are working hard to keep your home at the right temperature. So, during those peak seasons, prices can fluctuate quite a bit, and your supplier may not be as competitive as you think. So, be sure to consider this when making your selection of providers.
To date, the 16 U.S. states to introduce deregulation into energy markets are Connecticut, Illinois, Delaware, Maine, Massachusetts, Maryland, Montana, Michigan, New York, New Hampshire, New Jersey, Oregon, Ohio, Pennsylvania, Rhode Island, and Texas. If you live in any of these states, don’t hesitate to find out what options are available to you.