While you may have heard about energy deregulation, you may not completely understand what the benefits of such an action will be for you when it comes to your energy costs. Here are some things you should know about energy deregulation, even if it hasn’t happened in your state yet, in order to get the most benefit from the change.
What is the deregulation?
While California was first, it certainly isn’t the only state that has chosen to regulate energy. Energy deregulation means that energy companies no longer have a monopoly over energy provision in a certain area. The local governments have stepped in and divided the monopolies in order to stimulate increased competition, which ultimately increases quality and decreases prices. Energy deregulation impacts both electricity and natural gas production and distribution channels.
Companies who supply energy to deregulated areas have the opportunity to offer diverse energy choices when it comes to both services and rates. This allows the consumer to have more control over their energy costs by not only choosing the level of service they want, but who they choose to buy it from. The local electric company will still deliver the power just as they do today.
So, what changes for the customer? Not much. Power will still flow into their homes through the same lines that are currently in use. The local power supplier still provides maintenance for the power lines as well as the customer’s account and payments will still be made to the local electric company for services provided as well as for energy purchased. It is possible that the energy provider will send a bill directly, however this isn’t always the case.
What are the Benefits?
The main benefit to customers is the ability to save money on their power bills. Deregulation provides energy providers the ability to compete, which leads to lower prices, more options and better quality service. Energy monopolies have been in existence for decades as a way to protect the consumer against power outages due to substandard power supplies and infrastructures. However, adequate advancements have been made to support the deregulation of energy and break up the monopolies that have been fixing power rates in order to maximize profits for years.
What states are deregulated?
Deregulation isn’t a federally mandated change. Each state is responsible for taking a look at the current power situation and determining whether or not to allow deregulation to take place. While some states have been deregulated for years, others have not begun any sort of deregulation process.
Deregulation allows family owned companies like Palmco and others provide quality power to customers in their service region. You can find out more about deregulation by visiting Palmco on Facebook or other alternative suppliers on their social media pages.