Your Business Benefits from Deregulation
Why Deregulation?
After more than a century of living under a system of monopolistic providers and high electricity rates, the Texas State Legislature enacted legislation to deregulate the electricity industry and opened it up to competition on January 1, 2002.
What that means to your business…
Texans, for the first time, have the ability to choose their electric provider.
How it Happened
The deregulation of electricity began with the separation of the industry into three parts:
- The production of electricity at power plants across the state was deregulated in 1995, resulting in a large supply of new, cleaner and more efficient power plants. Power generated by these plants is sold on the open market.
- Transmission and Distribution Service Providers (TDSPs) are “wires and poles” companies responsible for ensuring electricity is delivered efficiently and safely. They also manage maintenance of the wires and poles, any outages and any emergencies. Delivery of electricity is still regulated and monitored by the Public Utility Commission of Texas.
- Retail Electric Providers (REPs), like Direct Energy, are responsible for selling electricity, generating bills, and providing customer service. REPs do not deliver electricity or maintain the wires and poles—that is done by the TDSPs. Your electric service will never be interrupted as a result of switching—it is the law.
What that means to your business …
- There is an abundant supply of electricity
- The switching process is smooth
- You receive the same reliable delivery of energy you have always counted on without any interruptions
- Electricity costs have come down now that customers have multiple options
All Texas Businesses Benefit
You are no longer forced to purchase electricity from the monopolies. Since the launch of competition Texans have saved over $2 billion on their energy costs.
Competition has given customers multiple options, bringing down electricity costs.
The Texas model has made switching easy and quick. Currently, most switches take place in 18 to 30 days. Texas now has a 99% success rate with switches. Even the 1% of switches that need additional work has no impact on the delivery of the customer’s electricity while the switch is being completed.
