Energy Deregulation

Before deregulation in the 1980s, the only option consumers had for their supply was their local utility; there was no choice. The government-regulated pricing and single-distribution source fostered a monopolistic marketplace. Once deregulation was approved, customers started benefiting from an open, free marketplace offering a choice in supplier and, ultimately, more competitive rates.

What Is Energy Deregulation?

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

Deregulation gives consumers a choice when it comes to their energy supplier. It also motivates suppliers to differentiate their products and offer comparable rates and pricing to be competitive in the marketplace.

Standard Utility Process

Standard Utility Process (Regulated Energy)

Deregulated Process

Deregulated Energy Proces

What Does Energy 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. A spectrum of product mixes are available, from 100% fixed price products to 100% market-based products.

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. 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.

Is My State Deregulated?

Energy Deregulation in the United States Placeholder
Energy Deregulation in the United States

How Can Ecom-Energy Help?

Ecom-Energy’s competitive procurement process provides:

  1. Budget Certainty – Energy procurement mitigates risk and allows facilities to create budget certainty.
  2. Savings Potential – With proper market timing, expertise, and strategy, customers can take advantage of savings opportunities.
  3. Cost Control – Take control of your own budget and spending to dictate when, how, and from whom you purchase your energy.

Ecom-Energy’s procurement solution includes:

  • Assessment of Customer Needs and Market Conditions
  • Deal Structure Analysis
  • Strategy Development and Implementation
  • RFP Development and Bid Selection
  • Bid Analysis and Price Negotiation
  • Contract Review
Click Here to Learn About Ecom-Energy’s Procurement Services