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Learn more about energy deregulation

Direct Energy, November 28, 2023

4 minute read

Learn more about energy deregulation

Direct Energy, November 28, 2023

4 minute read

In a deregulated energy market, also called a competitive market, customers can purchase natural gas and electricity from a competitive provider rather than their local utility. 

When customers choose a competitive provider, these companies buy electricity or natural gas supply for their customers and have it delivered to the local utility. The utility company then distributes the electricity or natural gas to the customers.

Increased competition in a deregulated market means more options for product pricing, features, and flexibility to choose from - so you can find a company that best meets your needs.

Photograph of a woman and her cat sitting in front of a portable electric heater
Photograph of a woman and her cat sitting in front of a portable electric heater
Photograph of a woman and her cat sitting in front of a portable electric heater

What is energy deregulation?

In states with energy deregulation laws, energy suppliers and deliverers are divided into 2 distinct groups. However, your utility company will still be responsible for delivering your energy, just like in a regulated market.

Living in a state with a deregulated energy market gives you more options for choosing your natural gas and electricity supplier. This opens up a wider range of energy plans for you to choose from, so you can find one that best suits your needs.

Why is energy deregulation beneficial?

Under deregulation, marketers purchase electricity or natural gas wholesale and may be able to sell it at a lower rate than their competition or the local utility. With more competitors in the market, there are multiple added benefits you can enjoy when choosing an electricity or natural gas plan:

  • Price protection, with a wider variety of pricing options
  • More competitive prices may now be available to customers
  • Larger selection of plans that support your lifestyle with perks like renewable energy, cash back or other rewards. 
  • Freedom of choice

Direct Energy proudly serves as a competitive supplier in these areas:

Connecticut | Delaware | Illinois | Indiana | Massachusetts | Michigan | New Hampshire | New Jersey | New York | Ohio | Pennsylvania | Rhode Island | Texas | Washington DC | Alberta

 

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