Energy Deregulation: Opportunities and Challenges

Residents of New York have been able to choose their energy supplier since the state’s Public Service Commission (PSC) began deregulating the energy market in the late 1990s. Since that time, thousands of residential energy consumers have made the switch to so-called energy service companies, or ESCOs. Only recently however, have those customers been able to compare what they are paying with what the regional utility companies would have charged them during the same time period.

In Syracuse for example, the local provider, National Grid has begun allowing customers to access an online tool that shows what they would have been charged by the utility. In many cases, the tool shows that a customer would have paid less by remaining with the utility company than by going with the ESCO.

What the comparison tool does not take into account however, is the type of contract that exists between the ESCO and the consumer. Many of the higher rates were for long-term contracts that guaranteed a certain fixed rate, regardless of future increases, this wasn’t accounted for. It also does not show rebates and discounts given to the rate payer by the ESCO. Finally, it does not account for energy derived from alternative sources, which costs more to produce, but which consumers say they want.

The example of upstate New York shows just how much is at stake in the battle for energy deregulation in this country. It also highlights how critical it is for fair and accurate energy cost-comparison services like those made available by Choose Energy. Consumers who want to find the lowest price for electric power or natural gas delivery in deregulated states can visit the ChooseEnergy.com website and quickly identify the lowest electricity rates for them. And the best part is that Choose Energy works with only the most reliable and trusted retail energy partners. We also maintain the most current pricing plans and never re-direct your request to another source. Choose Energy works on behalf of electricity consumers to find the best rates, period.

With energy deregulation comes an opportunity for unscrupulous individuals and companies to take advantage of ill-informed consumers and their displeasure with the traditional utilities. It’s up to companies like ours to inform and educate retail electricity customers on all of the choices available to them. Competition is finally coming to the electric utility marketplace, and we’re here to make finding it easier for you. It’s our goal to safely and reliably bring lower prices for energy to every one of our customers.