Understanding Gas and Electric Choice Programs

As consumers, we shop all the time. We do it so often, in fact, and have gotten so good at it that half the time we either don’t even know we’re shopping or we shop ‘on auto pilot’. As it stands, American consumers are expert shoppers, and it’s just simply a part of our lives.

But when it comes to things like natural gas utilities and electricity service, we haven’t really considered the ‘shopping’ aspect of our choice in utility suppliers. Signing up with gas and electric providers doesn’t really feel like shopping, and it may not be as fun as picking out a new TV or strolling the mall on the weekend. But it’s important to recognize the value in your right to choose gas and electricity suppliers.

The energy industry uses terms such as ?deregulation? and ?restructuring? to describe the changes taking place in natural gas and electric markets across the U.S. While it is important for the average layperson to understand what these terms mean (as they directly affect each of us who use gas and electricity in deregulated states), they still represent confusing jargon, or as I like to call them ?turnoff terms?. But I’m here to ensure that people know what deregulation really means: more freedom.

Natural Gas Choice

Most states in the United States, beginning in the 1990’s have become deregulated for natural gas, meaning consumers and business owners can shop and compare natural gas suppliers among competing companies, rather than being obligated to receive service from an ‘assigned’ utility.

As with electricity deregulation, nothing about the supply, transmission or distribution of natural gas has changed for the customers in deregulated areas. Because of this seamless transition (at least from the consumer’s point of view), it lets us focus on shopping suppliers for their merits, the value of their services, reliability and of course, price.

Programs such as Gas Choice help to perpetuate awareness about gas deregulation and enable customers to easily compare natural gas prices, plans, rates and services and switch to an alternative gas supplier if they so desire. Many free consulting services are offered to guide consumers through the process and help business owners save money on their utility costs.

Electric Choice

Electricity deregulation is a bit younger in terms of inception across the nation compared to the natural gas market restructuring. But the idea is still the same. Businesses and consumers can take advantage of Electric Choice programs to compare electric suppliers in deregulated areas. While there are fewer states offering deregulated power compared to natural gas, it is a swiftly growing trend.

As with gas, electricity customers can shop for the best rates among electric suppliers (also known as Retail Electric Providers or ?REP’s? in some states), and simply choose the one that’s best for them. Price seems to be the primary concern for electricity customers, but reliability and customer service should be heavily weighted in choosing electric providers as well.

Electric Choice programs exist to help consumers with free consulting, price and plan comparison, as well as assistance during the switching process.