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ELECTRICITY DEREGULATION:

The reduction or elimination of government power in a particular industry usually enacted to create more competition within the industry.”~Investopedia.com

 

The United States electric industry is undergoing a change in the way it delivers electricity to millions of households and businesses nationwide. The U.S. electric industry has been called the last great government sanctioned monopoly. Now it’s being deregulated and opened up to competition, allowing customers to choose their electricity provider much the same as how they would chose their cellular phone carrier.

 

Electricity deregulation has started in 21 different states with anticipation of it taking effect in more states shortly. Advocates have stressed reducing government control will benefit consumers by increasing the choice of suppliers, lowering prices, and increasing services. The results have been mixed nationwide. It has brought volatile wholesale prices resulting in rate increases in most areas.

 

Customers now have the choice to stay with their local utility company for the generation portion of their bills or switching to any one of their states licensed retail electricity providers. (REP). If a customer elects to stay with their local utility they have agreed to accept the company’s standards as well as a default rate based on wholesale market prices. Customers may switch providers at any time with no restrictions or fees from their local utility. For customers who do switch; the distribution and transmission portion of their bill continues to come from the local utility. They also continue to service any power outages or infrastructure problems. In other words the service you are familiar with doesn’t change, you're just switching to a lower rate.

 

Customers who don’t choose an alternative supplier typically pay higher rates and are not protected against market adjustments. Deregulation provides customers with opportunities to save money and expand their services; however it has also created confusion and lots of red tape.

 

Genesis Energy International understands the deregulated energy markets and will negotiate your energy contract in the most effective manner, at a fraction of the time and hassle you would most certainly endure.