What is Energy Deregulation?

What is Energy Deregulation?

Energy deregulation has been taking place across the country since the late 1990's.  During that time, many states have started to make changes to the regulations in the energy supply and distribution industry to improve competition between power service providers. Energy deregulation has split the energy industry by dividing the wholesale production of a given energy type from how it is distributed to the consumer. The purpose of the separation is to create a more competitive environment between these energy companies with the overall goal of lowering prices to the consumer.  Before deregulation, both natural gas and electricity were distributed by singular companies that both controlled the distribution channels and power generation for energy.

Will you benefit from energy deregulation?

An ESCO is an Energy Service Company.  Together with Energy vendors, ESCO’s have the power to provide a number of choices for service and pricing to consumers.  The ESCO's help the consumer choose the best rate or offer on the energy production side.  The local energy company still has to provide the energy distribution to the home or business, like they currently do over their gas or electricity lines.  Nothing really changes for the consumer or end costumer's point of view. During the change over from the old supplier to the new, there is no service interruption for the customer, and their present utility company continues to bill the users account and provide service. There is a possibility that the customer might receive a different energy bill from their energy producer as opposed to one complete statement from their current utility company.

While energy deregulation creates a great potential for savings by reducing your energy costs,  there also exits a huge opportunity to create a residual income stream by educating individuals, small business owners, and larger corporations about deregulation, and showing them how to save on their energy costs.

What states have started Energy Deregulation?

What states have started Energy Deregulation?

Energy Deregulation Map

Energy Deregulation is building momentum now.  Each state is making it’s own decision to deregulate based on the business climate, and the perceived lack of competition by the energy utilities. Some states have instituted deregulation for natural gas and electricity, while others may be deregulated for one type of energy or just the other. Other states haven’t even started any form of energy deregulation.  A map of the US above shows the status of energy deregulation for each state.  Be sure to explore this site for ways to save money, and also for ways to take advantage of energy deregulation and start generating income yourself. 

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