What is a Deregulated Electricity Market?
Deregulated Electricity, a concept some are familiar with but most are unaware. So, you may be asking, how does it affect me? In the late 90’s and early 2000’s cities across the US deregulated their energy to encourage free market competition and lower prices. These cities/markets allow the resident to select a from multiple electric providers, known as Retail Electric Providers. In most cases, there is one company (Transmission and Distribution Service Provider) who owns the power lines and distributes the power. Additionally, in a Deregulated electricity market, it’s the many different REP’s that will “bill” you for your usage. Everyone is using the same electricity no matter what third party company you chose That’s where a utility concierge company such as UtilityHound can help!
A Utility Concierge Such as UtilityHound Can Help You Pick an Electric Provider.
Companies like UtilityHound will help you find electricity and gas providers in your area at the lowest possible rates. Their no-cost services will not only help you find the best provider but will directly connect and sign you up! This will save you tons of time and frustrations of researching the different companies and plans offered at your location. Seems like a no-brainer, right? Their services aren’t just for people that are moving—even if you’ve been in your home with the same electric provider for the past 20 plus years, they can help! Utility concierge companies similar to UtilityHound will investigate local electricity providers (even the one you’re currently using) to see what rates they offer and compare power prices between your available choices.
Deregulated Electricity Plan Types
While selecting plans through a utility concierge for REP’s or third-party energy providers. You’ll often see multiple types of plans available for your choosing. The two main types that we’ll discuss today are Fixed-rate plans and Variable-rate plans.
These plans offer a resident consistency through a guaranteed rate for the term of the contract. Therefore, seasonal fluctuations (i.e. extreme heat or cold) or inconsistencies in commodities prices won’t affect customers with fixed-rate plans. Fixed-rate plans contractually lock in the rate, making them perfect for the homeowner or tenant that’s looking to stay put for 6-months or longer.
Variable-rate plans do as they say…they vary. These rates can fluctuate on a monthly or quarterly basis depending upon several factors. The one pro these plans offer is that there is no long-term contract associated with them. Most people that choose to go the variable rate route, are people that will temporarily be taking over a lease for 1-2 months, as they don’t want to be locked into a contract. Someone who is also unsure of where the future will take them could take advantage of a variable rate plan as well.
Feel more informed?… Let’s find you the best electric rate!