The state of Texas has a huge electricity market, the largest in the entire country. So, when the state decided to deregulate this market, it was big news.
What is deregulation
Electricity Companies Temple Texas deregulation lets companies compete for retail and consumer business in the market. With deregulation, customers contract with a Retail Electricity Provider (REP). The REP buys its electricity from a power plant. The REP also handles billing and customer service. The power is sent over the existing power lines, making the switch easy for consumers. REPs compete against each other, offering choices of price, service and green energy, giving consumers better choices at lower prices.
How did deregulated happen
The move to deregulation began in 1999 after legislation was introduced to eliminate state electrical monopolies and regulated electricity prices. The aim was to lower energy prices. It became law on January 1st, 2002. Since taking effect, about 85 percent of the businesses and almost half of the state households have changed electricity providers at least once.
Taking advantage of deregulation
The first step consumers make is discovering what options are available. By entering an address on ElectricityTexas, a person can find out what companies service their area. By comparing available providers and plans, the consumer can decide which to use and can order service directly on the site. Everything can be switched over within seven business days without interruption
Deregulation provides Texans with an opportunity to save money on electric bills, since they have the power to choose their provider.
These are the top five reasons deregulation is good for consumers:
- Pay less for electricity – This is the biggest benefit of energy deregulation. When providers compete for business, consumers pay less.
- Renewable energy options – If saving the environment is important, there is a better chance of finding a green energy plan in a deregulated market.
- Better customer service – In a regulated market, consumers are stuck with one provider, whether they have good customer service or not. In a deregulated market, if a company has bad customer service, the consumer can leave them and go somewhere else for better service.
- Promotions and loyalty programs – A regulated provider doesn’t have to fight for business, so they don’t offer customer incentives. But in a deregulated market, providers will often offer special promotions or loyalty programs to entice and keep customers.
- No interruption and quick turnaround – One of the concerns consumers have about deregulation is that they didn’t want to have to deal with their power shutting off and trying to time everything right to switch providers. Actually, switching is usually flawless for the consumer, and there is with no interruption of service.
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