Is Energy Deregulation The Way Forward For Sustainable Electricity Rates? Here’s All You Need To Know

The last few decades have seen numerous cities within the U.S. states introducing the concept of deregulated electricity. The changes are primarily directed towards taking electricity markets in these states from regulated to deregulated and offering several benefits to consumers in those states, including sustainable electricity rates.

In this post, we’re going to explore everything you need to know about energy regulation and how it is bringing about sustainable rates in multiple cities, including Dallas electricity rates and Killeen electricity rates.

Understanding the Concept of Energy Deregulation

Energy deregulation refers to the process that allows competitive energy suppliers to enter the open market and offer energy supply products to consumers. The highlight of this model is that energy prices are not regulated, and consumers are not forced or mandated to receive supply from their utility.

While only a few states in the U.S. operate in a deregulated market at present, many across the country are considering the move to energy deregulation.

These markets offer both residential and business property owners with a unique opportunity to choose their energy supplier, much like customers today have the freedom to select other standard household service providers such as grocery or phone. It is, however, essential to note that the marketing of these services is still regulated.

What is the Importance of Energy Deregulation?

The primary benefit of the energy deregulation mob is that it gives consumers the choice of picking their energy supplier from a Retail Electricity Provider (REP).

Also, it motivates retailers to differentiate their products from competitors by developing innovative features, options, and varied pricing plans that would have otherwise not been available to them.

In states where electricity deregulation has been in place for many years, such as Texas and Pennsylvania, the benefits of this model speak volumes for themselves. Some of these include:

  • Better energy technologies
  • Greener energies
  • Lower electricity rates
  • Additional energy options
  • Economic growth (both state and city-wide)
  • Improved customer service

Essential Facts About Energy Deregulation

While energy deregulation is becoming more prevalent in countries like the U.S. and Canada, many consumers still know very little about energy deregulation.

Here are some of the basic facts you need to know about energy deregulation to get the benefits of sustainable electricity rates in the long run-

Availability of Various Plans

Before you get a new energy plan in your area, you will be required to sign a  contract that details the length of your specific plan. Most of these plans range anywhere from 6 months to 24 months. In case you end that contract early (for a reason other than moving outside that company’s service area), you need to pay a fee that varies from company to company.

Energy deregulation means more than just the power to choose your supplier. It also means having the capacity to pick what type of plan you have. Most REPs offer multiple options such as fixed-rate plans, short term options, variable-rate plans, and long term options.

Difference in Law

Deregulation laws vary from state to state in the U.S. What this means is that not all states are deregulated. Not all cities and regions within these states that have deregulation are deregulated either. For example, in states such as Texas, almost 15% of the state is still regulated, including cities such as Austin.

How does Energy Deregulation Help Consumers?

The reason for switching over to an energy deregulation model was to break up the existence of utility monopolies. Until the 1990s, utilities were solely responsible for all elements of electricity from generation to supply to customer service.

Further, the number of utilities within each state were very small, which meant that customers had no choice over who provided their energy-related services.

Without any competition, there was no urgency to keep the electricity prices low or reasonable for end users. The government then decided to take action, and a bill was passed to open up the energy market to competition.

The basic idea behind the concept of energy deregulation is that the utility is still responsible for the distribution of the energy to your home irrespective of the supplier you choose. However, the supply price is not set by that same utility. Based on the area you live, you may either be billed directly by your supplier or be billed by your utility.

There are many ways in which energy deregulation has helped customers, a few of them are explained below-

Competitive Rates

You now have options to choose your energy provider to offer competitive pricing. For example, if you live in Dallas, you can choose your supplier to enjoy the best Dallas electricity rates.

Increased Competition and Better Services

Energy deregulation promotes competition among various energy service firms and motivates providers to offer excellent service to their customers.

Improved Energy Consciousness

The concept of energy deregulation helps users understand energy costs by evaluating various plans, and service providers help their customers to save and conserve energy.

Encourages Energy Efficiency

Deregulation empowers customers to be more energy efficient by choosing companies with more energy-efficient practices.

Innovative Products

Energy deregulation offers you the advantage of a variety of product options that may have otherwise not been available to you, which ensures that sustainable energy sources offset the maximum part of the energy you consume.

No or Minimal Service Interruptions

In the energy deregulation model, although the customer receives the electricity supply from a new source, their distribution company or local utility makes sure that the consistent delivery of the energy is maintained.

Overall, energy deregulation is a very positive and successful step that improves customer service and boosts the power of energy users.


Whether you already live in a deregulated market or your community is in the process of considering deregulation, it is imperative to know the concept and above facts about the deregulation market.

Make sure to research and understand all about the terms, laws, and regulations related to energy deregulation in your state. Taking this approach can help you keep it simple and straightforward and, as consumers, allow you to determine the best course of action for your energy consumption needs and enjoy sustainable electricity rates.