Energy Deregulation in the United States

Electricity deregulation created a competitive market giving consumers the ability to drive prices down to procure the lowest cost energy solutions for their businesses.

What Does Deregulation Mean?

For the first time in history, utility deregulation has given companies the power to decide who they will receive their energy from and at what cost. However, with so many different options available it’s very easy to make a decision that will end up costing you a substantial amount in avoidable expenses.

In regulated markets, consumers have no choice but to purchase electricity and natural gas from the local utility at prices regulated by the state and federal government.

The government deregulates energy by reforming old laws and passing new ones that change who can produce and sell energy. When multiple suppliers compete on the market, prices can be determined—and ideally remain lower—because of competition.

When you purchase energy from a competitive source, your electricity or natural gas are still delivered to you through local power lines and pipelines. In most cases, you’ll also receive and pay your single energy bill to your local utility, too. What changes is who you’re buying power from and how much you pay for it.

But deregulation also opens the door to numerous, more flexible energy options for terms of contract, price structures, market risk exposure and efficiency solutions. Whether you’re powering your home or a global business with hundreds of stores, that could mean a big difference in your bottom line.

States and provinces across North America have taken various approaches to deregulation. Some enjoy a completely open market; others deregulate only electricity or only natural gas; some are partially deregulated but limit the number of consumers participating or amount purchased; and others still are restricted by fully regulated markets.

What Does It Mean For You?

Today energy is deregulated across much of the United States and Canada. Consumers in these areas are attracted by opportunities to seek energy solutions that are tailored to their needs.

Because competition drives deregulated markets, energy prices in these areas are generally lower than in regulated markets. And with energy often accounting for one of the largest operating expenses, cost savings must be top-of-mind when businesses select a supplier.

Competitive suppliers can also offer customers a greater variety of customized solutions. Flexible energy choices for pricing, terms, service, billing and products may not be available to consumers in areas monopolized by utilities. But these are the kind of valuable options that can help you better manage your energy budget and meet business goals.

Underlying all of the consumer benefits, deregulation is also preparing the energy industry for a dynamic future. Competitive markets give suppliers a strong incentive to be innovative. Developing new solutions for businesses sets a company apart from other suppliers, attracts new customers and retains existing ones. Since major deregulation actions took place in the ’80s and ’90s, North America has seen rapid adoption of energy management strategies and efficiency conservation products—ideas and technologies which utilities were slow to develop and accept.

United Commercial Energy Providers is a leader in developing innovative energy products and services that help customers make their businesses better. Through energy choice and a suite of innovative products and services, customers can buy less electricity and natural gas and better manage the impact of energy on their budgets and operations.

Rely on the expertise of our team help you find the right solutions to make a difference for you and your bottom line.

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Deregulated Energy States and Markets

This map shows deregulated electric and gas markets in the US as of March 2017. No state has an energy market that is completely deregulated. The closest state is Texas with approximately 85% of the state having access to energy choice.

Map of Deregulated Energy States

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