
DEREGULATION 101
Deregulation began in the 1980's to give consumers choice and a chance for savings, but it also requires an extensive understanding of the markets.
There once was a time when everyone had to deal with the local utility company. That utility provided the three components of your energy service: generation, transmission, and distribution. That utility also sets the price for electricity and natural gas. You had no choice but to pay that price.
​Starting in 1977, states began to change their regulations and deregulate or "unbundle" the utility services, allowing consumers to "Shop around" for the actual utility commodity (electric or natural gas).
Energy deregulation is done on a state-by-state or Utility by Utility basis with some federal oversight and regulations administered by the Department of Energy and the Federal Energy Regulatory Commission (“FERC”). Each state has specific rules and there are different energy markets in each state. For example, in states like Maryland or Illinois, you must sign up with the Utility before seeking an alternative supplier but in Texas this is not required.
If you are in a deregulated market, your organization can benefit from shopping for its electric and natural gas supply in the open market. Shopping creates competition among energy suppliers, offering a variety of product options and contract terms that can be customized to your unique requirements.
Navigating these volatile energy markets and the extensive available choices is far from a simple exercise.
This is where Asset Energy can help. Asset's team of energy experts will help you understand the options brought about through the competitive marketplace and work with you to develop a procurement strategy that reduces costs and minimizes risks for your organization.
Although energy deregulation covers many states in the U.S. and countries throughout the world, the opportunities vary from market to market.