Understanding The Impact On Consumers
Open Market Energy wants our customers to fully understand energy dergulation and how it affects them as consumers.
What is Regulation?
In certain areas across North America, energy prices remain regulated. This means that all energy providing processes, including pricing, are governed by a regulatory or governmental body, with only the local utility able to sell directly to consumers. The utility companies, along with the government agencies set the prices for natural gas and electricity supply. This leaves the consumers with only one option when it comes to their energy provider.
What is Energy Deregulation?
Deregulation has taken place in many states and provinces throughout North America. It has allowed competitive energy suppliers to enter the market and offer their energy supply products to consumers. Energy prices are not regulated in these areas and consumers are not forced to receive supply from a single utility company. In deregulated markets, consumers can choose their supplier, similar to other common household service providers. However, the marketing of these services is still regulated.
Why is Energy Deregulation Important?
Deregulation gives consumers a choice. A deregulated market allows you to choose your commodities supplier. It also motivates retailers to differentiate their products from the utility and those of competitors by developing innovative features, pricing plans, and options that would have otherwise not been available.
Green energy products are an example of innovative programs made possible by retailers. In deregulated electricity markets, these products support the generation and injection of renewable energy into your electricity grid, making it greener than it wold be otherwise. In a deregulated natural gas market, for example, these green products support emission reduction projects that prevent polluting gases from entering the atmosphere and help contribute to a cleaner, greener environment.
States with Deregulated Electricity
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