What is Deregulation of Power?
Do you remember years ago when everyone had to use AT&T for their long distance telephone service? That changed when the telecom industry deregulated, which gave customers a choice. The same is now true in many states with the deregulation of electricity.
In the past, it was the utility company that enjoyed the power to choose, they chose:
- How much to charge
- How to profit from market fluctuations
- How to deliver service
- How to treat customers who had nowhere else to go
Deregulation of electricity means the “Supply” portion of ones bill is now open to competition allowing for the consumer to choose who supplies the energy.
The local utility will continue to deliver the electricity, they will continue to provide service and maintenance. Majority of the time the local utility will encourage the consumer to shop for an alternative energy supplier.