About Energy Deregulation

Okay, let’s recap from the last posting:

I'm Learning About Energy Deregulation!

Energy deregulation gives us a choice in deciding who we want to provide the energy we use in our homes.

I can choose to pay lower rates from an alternative supplier. My local energy company continues to deliver energy to me, without any change whatsoever.

The energy that you and I use is identical, regardless of who supplies my energy, and who supplies your energy.

For visual purposes, I will use the following analogy again. All of our energy is stored together in a large reservoir. This energy is then delivered to both my home and my neighbor’s home for local usage. Energy deregulation, simply allows me to designate, which energy provider (or supplier) that I want to deposit my portion of energy usage into this giant energy reservoir.

Nothing changes with the energy that I use in my home, regardless of who my energy supplier is. The local energy company continues to deliver energy to me (this is the energy distributor), and they continue to provide me with local service.

There is no service change, no energy interruption, and nothing changes about the energy that I use. The only difference is that I can choose an energy provider that offers me lower rates!

Next time you look at your electricity and natural gas bills, take notice of the fact that you are paying for two separate things. First, you are paying for the energy you consume. This is the kWh (electricity) and the Therm (natural gas) usage you see on your bill.

Second, you are paying a local delivery charge. This is because your local energy provider owns the distribution pipes and wires, and still has to maintain them. They will continue to service you locally, regardless of who you actually designate to be your energy provider.

For clarification, energy deregulation simply introduces competition. As a consumer, I can choose who I buy my energy from. Because my local energy company has always had entire control over my energy purchase, they have always set the prices that I paid. In the past (before energy deregulation), I never had a choice about this.

However, with energy deregulation, I can now choose to use an alternative energy supplier that will offer me lower rates on the energy that I use and consume. The local energy company will continue to distribute this energy to me, regardless of who my energy supplier is.

Because of codes and government requirements, the energy that I receive will be identical, whether I continue to use my incumbent energy supplier, or choose an alternative energy supplier. My electricity and natural gas will operate exactly the same, it will be delivered exactly the same, and I will not incur any power outage if I choose an alternative energy supplier.

You see, energy deregulation gives us a choice. There is no risk at all about the energy that I buy and use. Local service continues in the exact same way. Energy is delivered in the exact same way. And, the quality of my energy is identical, regardless of who I buy my energy from. If I have a problem and need service, I still call my local energy company who continues to be my local energy distributor.

In most cases, your billing will stay the same as well. Your local energy company will continue to provide all of your bills. You continue to pay your local company in the same way. This is because it doesn’t matter who I buy my energy from (my energy supplier), the local energy company will always deliver it to my home (my energy distributor).

I am writing a series of blog postings to help provide some education. I will continue this series, but if you want to view much of my research in full context, please visit: www.DiscountEnergyPlan.com. I will explain my detailed research, and show you how to save real money on your monthly bills.

If you are interested in learning about how you can further benefit from energy deregulation and actually make money at it, please click-through and view detailed information at: www.Energy-Wealth.com.

Energy Deregulation has recently started to give consumers a choice and break up these long-time monopolies. The idea is to create competition and in turn, give consumers a choice about the electricity and natural gas that they buy and use each month.

Energy Deregulation Can Save You Money!

These incumbent energy providers have never had any competition, and, for the most part, have grown fat and lazy. This means that new competitors (as introduced by energy deregulation) are able to offer much more competitive products at a lower cost to consumers. In theory, this means that we should be able to save money on our monthly electricity and natural gas bills!

Let me explain a little bit about how energy is delivered to our homes. First there is an energy supplier that actually delivers the energy into the local grid for distribution. You can view this almost as if there is a big reservoir that holds all of the energy for our local area. This reservoir feeds all of the homes in our area with the energy that is used and consumed.

Second, there is a local energy distributor that takes the energy from the reservoir and actually delivers this to your local home. This local energy distributor is the traditional incumbent provider that you have always paid your natural gas and electricity bills to. They have enjoyed a long-time monopoly on selling you electricity and natural gas.

Energy deregulation simply gives us a choice in deciding who we want to provide the energy we use. Let me clarify. The energy we use is all the same. The energy that I use is identical to the energy that my neighbor uses. Energy deregulation, simply allows me to designate, which energy provider that I want to deposit my portion of energy usage into this giant energy reservoir.

For clarification, all of the energy providers that now compete as a result of energy deregulation all supply the energy they sell into this large energy reservoir. All of this energy is held together and then delivered to the home. There is absolutely no difference between the energy from one provider or another provider. All of the energy that is delivered locally is identical regardless of whether it is delivered to my home or to my neighbor’s home.

So, when I choose a different energy supplier, my local energy distributor will operate in exactly the same way that they always have. This is because my local energy distributor owns the pipes and wires that deliver the energy to my home. It is important to realize that nothing changes at all with the energy that is delivered, and how that energy is delivered to my home.

The following video will provide a basic explanation about how energy deregulation works.

I am writing a series of blog postings to help provide some education. I will continue this series, but if you want to view much of my research in full context, please visit: www.DiscountEnergyPlan.com. I will explain my detailed research, and show you how to save real money on your monthly bills.

If you are interested in learning about how you can further benefit from energy deregulation and actually make money at it, please click-through and view detailed information at: www.Energy-Wealth.com.