Deregulation

Energy deregulation introduces competition and choice to the electricity and natural gas marketplaces. Many states restructured their energy marketplaces to allow choice, eliminating the monopolies held by local utility companies. Choice allows consumers to shop for different rates and product offerings from competing energy suppliers, while reliability and service remain guaranteed by their local utility. In most cases, consumers can still receive the same one bill from their utility as they always have.

Choice can provide flexibility in managing energy expense in several ways. Consumers can choose how and where they purchase their energy, as well as when and for how long. Consumers are afforded many different options such as fixed-price or variable contracts as well as flexibility in term lengths.