It is very important that you know how deregulation works before you embark on shopping for a new electricity provider or supplier. In the first place, you can only shop for an electricity provider because of energy deregulation. As a consumer you get the power to choose your provider, and ultimately, how much you will have to pay for the electricity or gas. Most Northern States have embraced deregulation of energy with some going for natural gas, some for electricity, and some for both. When the market is open like this, consumers benefit from increased competition. When energy suppliers compete for your money and attention, you definitely win. It is important that you know about what they are offering and why, so that you can save in the long run. Here are is some important information on deregulation of energy.

History of deregulation

The US is one of the largest energy consumers in the world. But for a long time, electricity and gas have been supplied and distributed by state or government utility companies like first energy who attained the monopoly status. This made the monopolies abuse their dominance and as a result consumers cried for a change. This is when new entrants were allowed into the market to beef up competition and meet the demands of consumers as well. There are over 31 states that have taken up deregulation of energy with some in the implementation process, while others are still stuck with regulated energy


How deregulation works

Since installing the infrastructure needed to distribute and supply electricity and gas is very expensive and tasking, the alternative energy suppliers still get to use the infrastructure, the electricity lines and the gas pipelines already installed by the utilities. In essence your local utility still supplies you with electricity just in case your supplier fails to do so or in times of emergencies.

As a consumer you get to enjoy reduced prices due to the competing energy supply companies, this saves you a lot of costs. Some just buy and resell the energy while others produce their own from the ground. In the end, you as a consumer of energy get to gain a lot from this program.

What to look for

Before shopping for a new supplier, there are various things that you should look into first before subscribing. First you should compare the rates and prices offered by the different suppliers, then look into other features like special packages and payment schemes.


You can get numerous competitive deals from how to lower electric bill, who offer border energy electric services. With the current economic status, you should not spend more than necessary on energy. With deregulation of energy you now have the power to choose.

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