What Happens When You Switch Electric Company?

This is the question many consumers in an electricity deregulated market do not quite understand which may give them certain apprehensions to switch electric company. But those who have understood the benefits opened for themselves great opportunities for saving precious dollars from their electricity bills as they now have the power to select and switch electric company.

As an overview, the deregulated electricity markets in states like Texas and Connecticut, the old monopolized utility system was replaced by multiple competing retail electric providers. This now created three types of companies: the power generators, the wires company (transmission and distribution), and the retailers. Only the poles and wires company remained regulated and the term “to switch electric company” refers to the retail electricity providers that takes care of the billing and other customer service needs.

So, what does it mean to switch electric company and why? The following can give you some insights so you can understand the full implications of a deregulated electricity market.

  • Lower your electric bills – The renewed level of competition is the biggest benefit of the deregulated electricity market, with consumers ending up paying lower electric bills when they switch electric company
  • Better Customer Service – With renewed competition comes better customer services as each retail electric provider vie for consumer attention. If a certain provider giver lousy service, consumers can just drop them and switch electric company anytime
  • No Service Interruption – When consumers switch electric company, they should not expect that power will be cut off during the turnover. Your pole and wires company remains the same so there will be no interruption of services
  • Renewable Energy Options – With a deregulated energy market comes your power to select providers that offer a green energy plan. You can now help save the environment with your choices! 
  • Reap the Benefits of Bonuses and Promotions – The competitive energy market opens the door for various special promotions, perks, bonuses and loyalty programs as retail electric providers compete for consumer subscription

When you switch electric companies in a deregulated energy market, you can reap all the benefits described above and much more. But be sure to select a provider not only with their power rates offerings but other important factors as well such as rate change frequencies, terms of service, collection policies, disconnection policies – all of which can be found by checking the provider’s electricity fact labels.