Save On Electricity

Save On Electricity

The deregulation of energy and how to save on electricity is a fairly new concept in the United States. That said, many individuals are unsure what deregulation is really all about? And, how you really can save on your electricity costs? It’s a complicated subject but I’ll give you the basic concept and leave out all the dry stuff. Think of it like a company that controls the distribution of a certain product or service that no longer has a monopoly on the market. With deregulation of energy, consumers are able to choose their own providers in many States and save on electricity costs. With more and more States coming on board all the time.

Take for example Microsoft and Bell Atlantic. At one time, they were gigantic companies simply because they controlled the market with very little competition. Thus, allowing these companies to charge whatever prices they choose. They chose to keep their prices high until the government stepped in and put price and rate caps forcing a type of competition that results in driving the price downward. The government puts price caps or rate caps on the price that these monopolies charge. The same thing is happening with the energy industry when it comes to consumers wanting to save on electricity costs. Local electric companies are no longer able to supply you, as well as, force you to pay for their generated electricity.

For example, the Texas Legislature passed a law disallowing the government to control electricity prices and control the marketplace with a monopoly, basically dictating how much they decide we’ll save on our electricity costs. A monopoly has many disadvantages for consumers, which forced the industry to change. By change I mean…a retail market was created through Retail Electricity Providers (REP’s). This allows for competition which ultimately reduces the market price and helps to keep prices low, and ultimately save on electricity costs. Texas has a reputation for the fastest growing and generation potential in relation to the electricity market, with generation capabilities of over 25 gigawatts in just the past few years.

As I stated above, REP’s market electricity to consumers, State by State depending on their licenses, and providing an alternative to save on their electricity costs. In Texas alone, there are approximately 40 Texas electricity providers that offer different plans and rates to save on electricity costs to both commercial and private customers. This would signify that Texas’ electricity market is very active and efficiently operating for its consumers, thus assisting them to save on their electricity costs each month.

If you notice on your bill it’s broken down in two parts…the generation portion and the supply portion. The generation portion of your bill is the cost to produce the electricity and transport the electricity to the electrical company with the added fees attached.  The supply portion is the amount the consumer pays for the electricity usage for their house.

Also, it’s important to know the supply side of the electricity will still be provided by your local utility company. It puts you more in the driver seat and helps you save on your electricity costs a little bit easier. They do all the work and you benefit from any saving on your electricity costs. They will continue to maintain your electric lines and respond to any emergencies or problems that you may have. The only difference that you will notice is a possible lower rate. Keep the same bill with no change in habits while you save on your electricity costs.

Many consumers are still unaware that they have choices with their energy providers and the possible savings on their electricity costs that could be realized. These are real costs can really add up over the long-term that could be in your pocket versus your energy provider. It’s all about getting the right information so you may benefit from deregulation and how it may affect you, and help you save on your electricity costs.

Bottom line, you have many providers to choose from to take advantage of deregulation and to finally start saving on your electricity costs. There are many independent companies that offer better rates than you may currently be paying today, to your local electric company. Choosing an electricity provider can be a bit confusing, but it really doesn’t need to be. All it takes is, knowing some basic information so you are able to ask the right questions for you and your family and save on your electricity costs.

Let’s start here…Energy Deregulation and what it means to you?

Thanks to our government they have mandated the deregulation of natural gas and electricity thus allowing us to choose and save on electricity costs. Prior to this, there was basically one company that provided all the elements for residential services such as billing, sales, delivery, production/generation and support for their customers.  With deregulation consumers now have the choice whom to purchase their power from, to minimize monthly expenditures and save on their electricity costs.

Just like you may choose your long distance provider…the same can be done with your energy supplier. Nothing changes in your life. You will continue receiving your electric and natural gas through their lines as deregulation continues to benefit YOU the consumer.  The energy deregulation industry is quickly moving forward, in much the same fashion as the deregulation of the phone industry did back in the 1980’s.

Deregulation of both electric and natural gas industries translates into a tremendous savings to the consumer as thousands and thousands of people learn how they may save hundreds of dollars on their monthly electricity bill, due to increased competition within this industry. Your utility company continues to deliver the natural gas or electricity regardless of who is chosen to supply the energy. They also continue to monitor their distribution system, read your meter and quickly respond to any emergencies. There may be many reasons why you decide to choose an alternate supplier. Usually it’s because consumers are looking to save money on their electricity during these tough economic times. Now days, you have many choices…so choose wisely…what’s good for you and your family. You’ll see…it seamless…and simple!.

I firmly believe, the deregulation of energy industry will be an enormous transfer of wealth in our life time and will ultimately be a focal point to help in saving Americans money on their electricity costs.

To learn more about how to save on electricity costs simply visit:

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