It used to be that people didn’t have the freedom to choose where they bought their power from. Every state had basically one source of electricity or gas and you had to buy from them, regardless of price. Now however, some states have started to deregulate power. This means that you have the freedom to choose another utilities company to buy power from. This can be an investor-owned company, a publicly-owned company, or an independent utilities company. However, not every state has all of these options. So far only 13 states give people the choice to find an alternate gas or electric utilities company to obtain power from and 18 states have yet to even make deregulated power legal. What Makes Deregulated Power So Controversial? For years utilities like gas and electricity have been controlled by the government. This ensured that health and safety measures were properly monitored, but it also unfortunately created a monopoly of power that made it possible for prices to rise without anything to check or lower them. Deregulated power creates independent companies that provide competition. One reason why the issue is so controversial is because it’s the first time power has ever been deregulated. Deregulation opens up a whole new job market and a way to make money. It’s also harder to make sure every company is following proper health and safety laws. It helps that the utilities still have to go through local utility companies, but it opens alleys for improper use of power as well. Basically, it’s so new that we just don’t know full effect deregulation will have on the utility distribution system in the United States. Deregulation Doesn’t Mean Using Different Power Just because power is deregulated it doesn’t mean that there are independent companies popping up all over with access to different power supplies. All the power usually comes from the same place, unless it’s green energy. What deregulated means is that these new independent utility companies offer different pricing options and policies, some of which are oftentimes a better fit for you depending on your circumstances or location. What Does Deregulation Mean For You?
This is how it all works. You have the companies that provide energy or natural gas. They sell it to all the available retail suppliers like the traditional government supplies and the new independent suppliers in deregulated states. These supplies sell their utilities through your familiar local utilities provider who then sends the power directly into your home or business. The utility company in your area is still responsible for the distribution of the power to your home regardless of the supplier you choose. However, the supply price isnâ€™t set by that same utility provider anymore. Depending on where you live, you may still continue to be billed by your utility provider, but you will see a mention of your new supplier. Or, in some cases you will be billed directly by your supplier. Instead of one rate, you will now have more pricing options and innovative energy products because of the competition. Shop My Power an independent comparison tool that is designed to assist people in the selection of their electricity or gas company in states that allow consumers to choose and compare electricity rates. With over 20 years in the energy industry, Shop My Power wants to use their expertise to take the frustration and confusion out electricity or gas rate shopping and help match you with the right energy source. http://www.shopmypower.com.
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Published on Aug 19, 2013
Does your state allow energy deregulation? If so, don’t waste any time, start shopping now for the best electricity and natural gas rates to...