When did deregulation begin?
Electricity deregulation began in the late 1990s when rates were capped on utility charges. Over the years, the developing concept was revised and improved. Now, electricity deregulation is offered in 23 states. Why haven’t I heard of deregulation before? Initially, energy deregulation was mainly advertised to business owners. This is because businesses use more electricity than residences and, therefore, gained the most benefit from deregulation. In the past few years, however, more and more homeowners have voiced their desire for a lower electric bill. As a result, alternate energy providers like ours have taken the initiative to inform homeowners and business-owners alike about the benefits of choosing your own electrical supplier. Is it 100% free? YES. Enrollment is free, and there’s no charge for switching. There are never any hidden costs. Our goal is to save residents and businesses money. Does it work the same for businesses? Our business customers typically see significant savings because of the large amount of energy they use. For businesses, we use custom pricing plans. Will customers get two utility bills? In most cases you’ll still receive just one utility bill each month from your local utility company. However some supplier do send a separate bill. Check with the individual supplier to be certain. Is it difficult for a customer to transfer service to your company? Absolutely not! Utility companies are required to support each customer’s decision to purchase electricity from a lower-cost supplier. You can rest assured that you will not experience a disruption in service during the transition. Why can’t the utilities simply lower their supply rates? Most utilities enter into long term fixed-rate contracts to prevent their customers from changes in generation costs, but they pay a premium for the decreased risk. As a result, the utilities rates in most of the deregulated states are among the highest in the continental United States. Will the Utilities lose money? No. As part of deregulation, the utilities do not make a profit on the supply portion of the bill. The utility only purchases electricity for their customers that do not choose an outside electric supplier. |
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