Deregulation Overview

Choosing an energy supplier to provide electricity or natural gas is a freedom your business has because of energy deregulation. The deregulation process began in the 1980s for natural gas and in the 1990s for electricity, and this process continue today.

What is Deregulation?
Deregulation essentially unbundles the generation, distribution, and retailing of energy - the three basic components of traditional energy utility monopolies. The deregulation process has turned energy generation and energy sales into deregulated businesses, while energy distribution, transmission and transportation have been protected as regulated businesses. For end users this means they can now choose how and whom to purchase their energy from, but the delivery of that energy is still handled by their traditional local utility. This means that regardless of their decisions, the energy will still be delivered as it always has been with no change in the level of service or quality.

This choice that now exists for clients has created a plethora of energy suppliers, eager to compete for customers and provide a wealth of choices around pricing structures, contract provisions, billing options, renewable energy options and energy management services. These choices translate to lower costs for consumers.

How Does Deregulation Impact Our Clients?
While energy deregulation has granted much more control and flexibility to businesses, it has also created a complex energy purchasing process. There are many energy suppliers that differ greatly in their capabilities. There are many choices for pricing structures. Contract provisions vary greatly from one retailer to another. And every day energy prices change with market fluctuations, making the decision on contract timing a critical one. Most end users are not energy experts, and therefore choose a trusted energy advisor, such as Amerex Energy Services, to help them navigate this complex web.

For more information about deregulation and how it affects your business or institution, contact us today.