Deregulation creates choice for you. And that's a good thing.
It's a simple law of economics. When companies compete for your business, you win. That's why in many markets around the country, governments have deregulated energy utilities so that different companies can compete for electric and gas customers' business. Competition drives prices down. And customers pay less.
If you live in a deregulated market, you have the power to choose the company that supplies energy to your home or business. By the time you flip a switch or press a button to enjoy the benefits of convenient, reliable energy, several different entities have worked together to bring this energy to you.
1. First, provider companies either generate electricity or process natural gas.
2. Next, a Retail Supplier like Spark Energy buys power and/or gas to meet the needs of customers like you, competing on the open market for the best price. You can think of them as your own personal energy shopper. It's this competition that ultimately drives prices down and gives you more value for your money.
3. For the physical distribution and delivery of the electricity and gas to your home, we all depend on the local utilities to maintain the lines and pipes to keep the system safe and operating. Your local utility, officially known as a Transmission and Distribution Service Provider (TDSP) is who you call if you have an emergency or service outage.
4. Finally, you get to enjoy uninterrupted energy service with the added benefit of being able to choose the company you buy your energy from.
Each state manages an agency that regulates rates and service while looking out for the interests of customers.
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