What Is Energy Deregulation?

  • Published: September 17, 2020
  • Read Time: 2 Minutes

Energy deregulation gives you the power to switch your electricity or natural gas supplier and affects how much you will pay for the commodity.

Deregulation gives consumers a choice when it comes to their energy supplier. It also motivates suppliers to differentiate their products and offer competitive rates for your benefit.

Standard Utility Process
Deregulated Process

What Does Deregulation Mean for Me?

Having the power to choose your energy supplier allows you to compare natural gas and electricity rates, giving you more control over your energy costs. Deregulated energy also gives you the chance to choose from different products based on your organization’s budget and risk tolerance.

Deregulation FAQ

  • You don’t have to worry about service interruptions when you switch energy suppliers because your local utility continues to deliver the physical commodity to your facility.
  • The process is not a physical switching of service but a contractual switch from the utility to a third party supplier that is able to procure the energy commodity differently.
  • Your utility is still responsible for distributing energy commodities to your facilities, regardless of the supplier that you choose.
  • The only difference is that the supply price is not set by your utility.
  • You will typically receive one monthly bill for the commodity from your supplier, and one monthly bill for the utility for the delivery of that supply.
About Ryan De La Cruz, REP, CEP, CMVP
Ryan De La Cruz

As Director of Business Development, Ryan is responsible for the expansion of Ecom-Energy’s products and services. He focuses on driving market and industry insight by utilizing Ecom-Energy’s technical expertise in market trends, forecasts, and analyses.