Since the deregulation of electricity has gone viral over a large number of states, numerous electricity providers are coming up in the market. Deregulation has disturbed the unopposed monopoly of electricity providers over the United States. Even a few days back the customers had to be loyal to a single electricity service provider even if they had to pay excessive costs for the services. The electricity industry has been made subject to the restrictions of de-regulation like the car or juice industries. There is a notable change in the attitude of the service providers of this industry since they are no longer being able to enjoy the benefits of conducting their business in an unrivaled manner.
What is deregulation?
This deregulation has made it possible for the consumers to use high quality services at low prices from the electricity suppliers. Since the marketing will turn excessively competitive there will be a consequent tendency among the providers to achieve near perfection in their services. Customer services and lower costs, which were previously issues of less consideration, will become of high priority for them. And since almost all of us are becoming eco-friendly, this competition will force the companies to come up with newer ways of going green.
Consumers will also not have to stick to a single kind of electricity service. Suppliers will come up with newer products and more innovative schemes to keep themselves on the front in the competition. Consumers then will have a number of choices and will be able to choose among them. They will be able to buy services which will be able to meet their needs in the most appropriate manner.
Electricity providers can be classified into three major types. One can chose among these as par one’s necessities. Since each of these types have its own advantages and disadvantages. Thus it is good to have an idea about what is your actual requirement.
Firstly, there is the fixed rate service, where one has to pay the same amount every month. This will help you to have a clear idea of how much you will have to pay for your electricity each month. But if anytime down the line the rates go down, you will not be able to enjoy the benefits of the lower costs. You will have to continue paying higher rates as had been fixed previously.
However, a variable rate plan is something where your monthly expenses will keep on changing with the change in the rate. You might find yourself enjoying cheaper rates or cribbing over a huge electricity bill. The situation will be enormously volatile. The other important from is the time-of-use electricity rate. This is an even more changeable rate. Your payment will depend upon the time you use the service. You will have to pay more if you are using electricity at the ‘peak hours’ or the time when most individuals are doing, while you will need to pay less if your usage time is when lesser number of people are using the services.
Thus, deregulating has opened a new horizon for the users. It has made electricity an all the more enjoyable service since one will now get better services at cheaper prices. They will also be able to choose the schemes according to their personal needs.