Benefits of Electricity Deregulation
Since the Texas energy market was deregulated in 2002, most parts of Texas have enjoyed a deregulated electricity market. Deregulation provides Texans with a great opportunity to save money on their electricity bills, as eligible consumers have the power to choose their electricity provider. Keep reading to learn all about deregulation
First, what is electricity deregulation? In a nutshell, deregulation takes a market served by one electricity company and opens it up for competition from multiple companies. This forces electricity companies to compete against each other, which fosters competitive pricing.
Electricity delivery is still handled by the same ‘poles and wires’ company, but you buy electricity from a Retail Electricity Provider (REP) that handles customer service and billing. It’s as simple as that.
So why switch electric companies? Here are the top reasons electricity deregulation is good for you:
- Pay less for electricity – This is obviously the biggest benefit to energy deregulation. When providers compete for your business, you end up paying less for electricity service.
- Find renewable energy options – If being green is important to you, you have a much better chance of finding a green energy plan in a deregulated market.
- Get the best customer service – Let’s be honest, some providers are lacking a little in the customer service department. If you’re in a regulated market, you’re stuck with one provider, whether they have good customer service or not. In a deregulated market though, if you find a company with lousy customer care, you can drop them for someone better!
- Take advantage of promotions and loyalty programs – A regulated provider doesn’t have to fight for their customers, so they don’t have to offer any extra incentives. But in a deregulated market, providers will often times offer special promotions (like gift cards when you sign up) or loyalty programs (like getting cash back on your bills after a certain amount of time).
- Experience no interruption and quick turnaround – One of the most common concerns consumers have about deregulation is that they didn’t want to have to deal with shutting off their power and trying to time things right for a switch. In reality, switching is seamless for the consumer, with no interruption in service. Also, a switch to a new provider can occur in as little as three days!