Houston, TX ( Kazor ) December 15, 2011 – Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces. In the world of electricity, deregulation simply means choice in electricity suppliers.
In many of today’s markets, customers now have the choice to receive their electricity supply from their Local Distribution Company (LDC / Utility) or from a qualified, licensed third party supplier known as a Retail Electric Provider (REP). Your energy will still be delivered and billed through the infrastructure owned, operated and regulated by the LDC; however, you will now have the option to choose who supplies your energy, how they supply it, and what the cost will be.
Deregulation of utility is one of the best things that have happened for business owners in the market. This opens up an opportunity for people to just save their money so easily. Deregulation laws differ slightly from state to state, but the basic concept is the same and more importantly, the end result is the same. And the end result is, a business electricity customer can easily reduce his/her business electricity bill, saving up to 25% every month.
Deregulation effectively allows Retail Energy Providers (REPs) to enter the marketplace and purchase energy from the Energy Grid to sell to end-users at market prices. Because of strict regulatory control, non-profit status and the way in which energy is purchased by the LDC, Local Distribution Company (LDC / Utility), REPs are typically able to purchase and provide the energy to end-users at a lower price.
As you well know, the free market is hands down the best system ever devised for keeping quality high and prices low. Put it to work now for your business, and do it NOW.
In a nutshell, electricity deregulation separates the energy deliverer (your utility company) from the supplier. This gives consumers (you) more choice, in that you can finally choose an electric provider offering a better price that you are getting now.
Through deregulation, we are able to provide consumers information about low-cost alternatives to their utility company. Consumers now have a choice whether they want to save money on their utility bill and just how much as well.