Michigan deregulated energy is the best thing to happen to the energy market in our cash-strapped state, at least according to consumers who are now paying 15% less on their energy bills. With Michigan deregulated energy, the energy market is now open to competition. Before deregulation, the public utilities were able to form a monopoly on service and rates. This caused consumers and lawmakers to become uneasy. In the year 2001, Michigan decided to deregulate its energy market and Michigan deregulated energy was born.
How Does the Michigan deregulated energy Market Work?
Before Michigan deregulated energy was solidified in the law books, consumers had little choice as to what company supplied their energy services. The public gas and electric utility companies could charge anything they wanted and this caused consumer bills to fluctuate widely. These fluctuations were caused by changes in the market and the demands of customers. During this time, the rates you paid were determined by your average energy usage, which were established into neat little brackets.
Once Michigan deregulated energy was put into place, the state allowed consumers to purchase their electric and gas services from third-party providers. The idea is to lower prices, increase customer service and do away with the bill fluctuations and higher prices that resulted from the monopoly the utilities had on the Michigan energy market. With Michigan deregulated energy, the utilities still own and maintain the lines and delivery services, but billing and customer service are all handled by the third-party.
As the consumer, you don’t notice a thing. The Michigan deregulated energy market is put into place to make the switch seamless and painless for all involved. The only thing you will notice is a different letterhead on the bill and a lower rate, which you will be able to select beforehand.
If you have a repair or maintenance issue, you contact your utility, but if you have a billing issue, you contact the third-party. This allows the utilities to focus on what they do best and it allows you as the consumer to save. That is why many feel that Michigan deregulated energy is such a boost for the state’s economy.
With more competition and less price gouging from the state-run utilities, consumers have more power to choose the best of the best, and thus save big come bill time.
How to Take Advantage of the Michigan Deregulated Energy Market
If you want to save more on your energy bills each month, you need to be proactive. Contact your local utility company or visit their website and find out how many third-party electric and gas providers are available in your area. These are also known as Energy Services Companies or ESCOs. Choose the one with the lowest rates and contact the company directly. With a simple verbal confirmation, the switch will occur and you will notice the savings reflected on your next bill.
Hopefully more consumers will choose to enter the Michigan deregulated energy market in the coming months. With the prospect of lower bills and improved customer service, it is hard to understand why anyone would choose to remain with the public utility and thus subject themselves to fluctuations and higher prices. Don’t get lost in some utility’s energy bracket. Enter the Michigan deregulated energy market and become a valued customer with a third-party energy provider.