You’ve probably heard the term energy deregulation once or twice but, what exactly does that mean? Energy deregulation means that the consumer is allowed to choose their energy supplier. For example, think of who you pay your electric bill to. That is the supplier for your town. However, in a deregulated area, you can get your energy from an alternate supplier. Your bill will still be paid to the main electric company, but the rate you pay is determined by the supplier of your choice.
Because the market now has multiple energy providers competing, rates stay affordable. And for consumers, the worry of not finding providers that suit their specific needs disappears. We’ve covered the basics of what is a deregulated energy market, but let’s dive deeper into it shall we?
How Did Energy Deregulation Come to Be?
Energy Deregulation markets exist all over the world, but in the US, not every state is energy deregulated. This mostly has to do with the lack of competition regarding energy providers in some states. Deregulation happened because the government established laws around the selling of energy through the Public Utilities Holding Company Act.
In an effort to get rid of energy monopolies, there have been different efforts made on the road to deregulation. After an energy crisis, chaos, and different acts put in place it was finally by 1999 that a few states including California, Massachusetts, New York, Pennsylvania, Rhode Island, and Texas had become partially energy deregulated states.
What are the Benefits of Energy Deregulation?
One of the main benefits of deregulated energy is that it allows for more competition, which can lead to lower prices for consumers. When there are multiple energy companies vying for customers, they may offer lower rates in order to attract business. This can be especially beneficial for businesses, which often have higher energy needs and can potentially save significant amounts of money through competition.
Another benefit of deregulated energy is that it can lead to greater innovation and the adoption of new technologies. With the ability to freely enter and exit the market, energy companies are more likely to invest in research and development in order to differentiate themselves and improve their services. This can result in the development of more efficient and environmentally friendly energy sources, which can have positive impacts on both the energy industry and the environment.
In addition to these benefits, deregulated energy can also provide greater choice and flexibility for consumers. Rather than being tied to a single energy provider, consumers in deregulated energy markets have the ability to shop around and choose the provider that best meets their needs. This can be especially useful for those who have specific energy needs or preferences, such as a desire for renewable energy sources.
Energy Brokers Give You Options
Every business deserves options. Energy deregulation gives you the freedom to choose your electricity and natural gas supplier in certain states. So, we can all agree that energy deregulation is a great thing, however, it can also mean more difficulties and a harder decision process. This added complexity brings higher risk. To avoid the risks and only enjoy all the benefits, most business owners turn to energy brokers that can help them navigate the markets.
GreenStar Solutions Can Help You
At GreenStar solutions, our energy experts can help you create the best energy strategy for your business needs at no cost to you! We know a thing or two about electricity, and we are best qualified to analyze your business energy needs to match you with the best retail energy provider to take the stress of finding one of your hands.
As brokers we are completely unbiased toward any providers, instead, we are here to watch out for you and get you the best prices for the best services. Our loyalty lies in giving your business the appropriate solution to your needs. If you are ready to let us do the homework for you, get in touch with us today so we can help you get started!