What is energy deregulation?
Put simply, energy deregulation allows consumers to choose which company they buy their energy from. On the flipside, residents in regulated markets don't have any options when it comes to energy. They have to purchase energy from the utility company operating in their area.
Energy deregulation isn’t the easiest topic to understand, but once you get past all the new terms and concepts, it’s possible to make the system benefit your bottom line significantly. Utilities aren’t what they used to be now that the market has been deregulated, and there are dozens of new players offering energy products to residents and business owners alike.
Why does energy deregulation matter?
Energy deregulation is exciting because it is a freedom that most people in the U.S. aren't able to take advantage of. Thanks to the Pennsylvanians in the General Assembly, people across the state now have the power to choose among energy suppliers. Being able to choose what company you buy energy from allows you to take unprecedented control over your energy costs.
In an effort to smooth Pennsylvania's transition to a deregulated energy market, state representatives put rate caps in place, all of which expired by 2011. Those rate caps helped keep energy prices down, but since they disappeared there have been dramatic increases in the average cost of each kilowatt hour of energy in Pennsylvania, according to data collected by the U.S. Energy Information Administration.
As utility companies continue to raise their prices, now is the perfect time to see what you could be paying for energy with a third-party supplier.
Embracing energy deregulation can really save you money, in part because suppliers have to compete for your business! If you choose to continue purchasing your energy from a utility company, more often than not that means you'll be subjecting yourself to a variable-rate structure that can change every quarter. When you have a variable-rate plan, the costs for energy can fluctuate widely.
Many retail energy suppliers in Pennsylvania offer fixed-rate plans, ensuring that the rates you pay now will remain the same for the duration of your contract. Having that sort of stability is priceless in a market as unstable as energy, and that's just one example of the benefits afforded consumers through deregulation.
Remember, in a deregulated energy market, consumers hold all the cards. Make your supplier work for you by seeking out the plan that fits your needs and budget best. To learn how to take the steps necessary to exercise your right to switch, visit our page on choosing a supplier.