Many states have recently deregulated their energy markets. What this means is that utilities like electricity and gas are no longer provided by a single company. Consumers are free to choose which company they would like to have provide their utilities. Depending on the individual consumer's current rates, electricity usage, and agreement with the supplier, a great deal of money could be saved. Estimates range between five and fifteen percent a year. That might not sound like much, but consider that industrial electricity customers typically consume more than a megawatt of power and have utility bills over two hundred thousand dollars annually. While your home or business might not use that much power, you can still benefit from deregulation.

Whether you're paying too much, or your utility offers bad customer service, if you live in deregulated state, you have the option to try another company. While deregulation does contain the risk of more volatile prices than we have seen in the past, it also opens the doors for competition between providers to provide the best prices and service to consumers. You could see better prices, and bills that are easier to understand, just by changing to a different company.

Deregulation is not just for people worried about the cost of their energy, however. If you're concerned about the environmental effects of traditional power generation, deregulation allows you to purchase your power from a company which generates it in a greener way. You might pay a little bit more, but surveys suggest that as much as seventy-five percent of consumers are willing to do so if they're assured that their power is generated sustainable. If you're interested in being able to power your home entirely with electricity generated by wind, water, or other eco-friendly means, rather than coal or oil, deregulation will allow you to make that choice.

To get the most out of your ability to choose your power and gas providers, you should understand your energy use patterns. Figure out how much you use and when. Consider whether you're more concerned about the cost of your power, its source, or maintaining a steady price. Decide whether or not you're able to manage your power use when prices rise. All of these factors contribute to the company you choose as an energy provider.

Deregulation opens many doors to energy consumers. We're not used to being able to choose who produces our electricity and provides our natural gas. However, picking the company that best suits our needs will soon be as habitual as sticking with the same company is now. A competitive market allows consumers to get the best possible service and prices for their energy. If you live in a state that has deregulated the energy industry, investigate your options now. Whether you're a residential customer, a small business owner, or a large company, you could benefit greatly from the new freedom that deregulation offers.

About the Author

Find out how to earn an income by teaching others how to inform people about reducing their utility bills at: Ignite and Stream Energy and explore the possibilities that energy de-regulation has created.