New Jersey deregulated energy has been in affect a little longer than a decade and many consumers are left wondering if the state is better or worse off because of it. If you look at the cold hard numbers, you will see that consumers are now paying far less for electric and gas service than they were before New Jersey deregulated energy went into effect. To better understand how prices have fallen, let’s examine how New Jersey deregulated energy works and how it can help the average home or business owner (or renter) save on this year’s energy consumption.
Homeowners and renters now have more choices as to which company provides their electricity thanks to Pennsylvania deregulated energy. Prior to deregulation, Pennsylvania residents were paying nearly 60%more than the average homeowner or renter pays today. During that time, residents had few choices as far as electricity providers were concerned and that meant that the utility companies could charge whatever they wanted since there was very little oversight and zero competition. It didn’t take long before lawmakers stepped in and introduced electricity deregulation in Pennsylvania to the permanent record. This opened the energy market to competition once and for all with the intention of lowering prices and increasing customer service for all involved. Let’s examine Pennsylvania deregulated energy and how it can affect the average resident.
Many people are confused about electrical deregulation. Mainly they don’t understand how electrical deregulation will benefit them. Many people just like to go with the status quo. They are used to things the way they are and anything that hints at change is foreign and should be killed with fire. Yet it is important to understand the benefits of deregulated energy before you throw the baby out the bathwater. The following benefits should give you pause and cause you to reconsider electrical deregulation for your own home or business.
Everyone Likes to Save Money
If you pay an electricity bill, who do you pay it to? Have you ever paid attention? If you were the primary account holder on your electric account prior to 1978, you may have paid the bill to your local electricity utility company. That makes sense, doesn’t it? They provide the electricity and you pay the bill for it. If you haven’t noticed, a change has been occurring lately in several states as it applies to the energy industry. Due to electricity deregulation, third-party non-utility electric retailers will now take over the service and billing of energy services you receive in your home or office, but the local utility company will still retain ownership of the electricity that is provided to your home. Confused yet? Let’s break it down into simpler terms to make the concept a little easier.
When you hear the term ‘energy industry’, you may think it refers to merely electric and gas companies. In fact, the term energy industry can refer to a wide myriad of industries involved with the production and sale of power, gas and energy. On one hand you have the companies that extract the fuel, such as oil and gas, from the Earth and then you have the manufacturing companies, the ones that take the fuel through the refining process and then of course there are the companies that deal with the distribution of energy to homes and businesses.
As you begin to learn more about deregulated energy, you may begin to wonder if it’s good or bad for you in the long run. It is always a good idea to weigh out the pros and the cons of any situation before jumping on board, and deciding on natural gas and electric companies should be no different. The following are the pros and cons of deregulated energy so that you can make a sound and informed decision regarding your energy service.
The Benefits of Deregulated Energy
When you call the local electric company for electric or gas power, which usually happens when you move into a new home or open a new office, you might think that you are stuck paying the rates you’re offered. We’re not referring to haggling. You shouldn’t try to talk the utility company into giving you a lower rate. Instead, you should switch from the local utility provider altogether. Thanks to electrical deregulation, you can now cut down your electricity or gas bill by making the switch to a third-party electrical provider. This creates more competition in the energy industry, which equates to lower prices, improved customer service and an enhanced experience for energy customers.
When you move into a new apartment, home or office, one of the first steps you will typically take is to activate your gas and/or electricity service. Depending on where you live, you may notice that you now have many choices as to where your energy comes from. You can thank energy deregulation for this. It used to be the public utility companies that handled the supply, transmission and distribution of gas and electric. In the current energy market, you now have third-party companies handling many aspects of the power supply chain. Let’s examine the current energy market so that you can better understand why you are paying the amounts you are.
Energy deregulation is now commonplace in all states across the union, but has it helped the U.S. as a whole? What are some of the effects of energy deregulation and how do they affect the average American home or business owner? Let’s look at these effects now to see how you, as an energy consumer, have been affected.
As an energy consumer, you may be wondering how deregulated energy can save you money. Deregulated services are not a new concept. You may be familiar with deregulation because of how you chose your phone company. Just like phone service, energy deregulation allows you to choose between many different companies, as opposed to only Ma Bell or AT&T back in the day. Thanks to deregulation, your primary utility company will still run the power plants and they will still deliver the energy to your home through the lines that they own and operate. However, the billing and customer service comes from a third-party non-utility electrical provider. This improves the energy industry in a number of ways. Let’s examine how deregulated energy can save you money and who you should call if your power or gas ever goes out.