What is deregulation?
Deregulation is the opening up of a product or service to competition. As
it relates to the energy industry, deregulation allows individuals and
companies to choose their energy service provider.
Why deregulate?
When a single company has a monopoly, it controls the price for a particular
product or service. Deregulation introduces competition, which facilitates the
opportunity for lower prices, and improved service.
How does energy deregulation work?
Three different groups are involved in delivering electricity or gas to your
home or business.
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Suppliers. They sell the commodity, the actual electricity or
natural gas you consume.
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Interstate transportation or transmission companies. They transport
the energy supply from its source (e.g. gas from Texas or Louisiana) to the
receiving station of the utility.
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Local distribution companies. They deliver the electricity via wires and
gas via pipes.
Where does Econnergy fit in this market?
In deregulated energy markets, customers can purchase energy supply from an
alternative supplier. These suppliers are called Energy Service Companies
(ESCOs) or Energy Service Providers (ESPs). Econnergy is a licensed ESCO by the
state utility commission and by all local utility companies in which we
operate.
Isn’t energy deregulation risky?
Because Econnergy delivers the commodity directly to the Local Distribution
Company (LDC), the transition is transparent to the customer. The utility
continues to maintain the infrastructure of gas lines and electric wires and
poles, still reads the meters, and responds to emergencies.
Ready to enroll with Econnergy? We're ready
for you .
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