Frequently Asked Questions

How does deregulation work?

• Customers choose a new supplier for electricity or natural gas supply.
• While choosing Direct Energy Services, the consumer will continue to have their service and delivery provided by their current local utility.
• Marketers, like Direct Energy Services, buy electricity or natural gas supply for its customers and have it delivered to the local utility.
• The utility then distributes the electricity or natural gas to the customer.
• Regulated utilities make their money on the delivery and service.

Why is deregulation beneficial?

Under deregulation, marketers purchase electricity or natural gas at wholesale and may be able to sell it at a lower price to the consumer than was previously available before deregulation.

• Price Protection (with a wider variety of pricing options).
• Lower prices may now be available to the consumer.
• More product plans are available for customers.
• Prices may be stabilized for the consumer.
• Better customer service.
• Freedom of Choice.

Page last modified: November 12, 2007