Since it began in the late 1990s, deregulation of energy has created opportunity throughout the marketplace, opening the power industry up to competition. The change has given home owners and small-to-mid sized businesses the power to compare offers from different energy companies, and make a choice about where to buy electricity and natural gas.
It’s all about the power to choose the power you use.
Prior to deregulation, one utility company provided customers with energy service. Deregulation allows consumers to choose where they buy their power, much as they can choose their long-distance company. Under deregulation, the delivery of energy is still regulated and is the responsibility of the local utility company. If you decide to purchase your energy supply from a Retailer your current utility provider will continue to bill you. All that really changes is the line on your bill that deals with the electricity or natural gas commodity.
The Choice is Yours…
You have two options when it comes to buying energy:
- Purchase Electricity and/or Natural Gas from your Local Utility
If you decide to buy your hydro, for example, from your local hydro utility, the electricity rate that you pay is set by the Government and is referred to as the Regulated Price Plan (RPP) rate. This price generally changes every 6 months, in April and November. Throughout 2009 and part of 2010, utilities across Ontario replaced meters used by residential customer to introduce Time-of-Use Meters, so called, “Smart Meters”.
The utility companies use a pricing formula with time-of-use meters, since the meters not only report on how much electricity you use, but also when you use it.
2. Purchase Electricity and/or Natural Gas from an Energy Retailer
Energy Retailers cater to consumers who want long-term energy price protection. Energy Retailers can provide a fixed electricity rate (price per kWh), for up to five years, regardless of monthly or time-of-use consumption.
For some, getting off the time-of-use meter is the ideal scenario. By partnering with a Retailer you can do exactly that. Time-of-Use (TOU), in theory, is a good idea. In practicality, it isn’t. TOU has a dramatic impact on lower income families, stay at home moms/dads, work from home businesses, and especially seniors!
The concept of TOU is that while the working class is away from home that the demand on energy drops significantly. In real life this simply does not work. While many go to work, many also stay at home. Unemployed, handicapped, part-time workers, and seniors, are at home during those expensive daytime hours. For those that require daytime use of electricity the costs become almost double that of late night use.
So, What’s the Best Solution?
Sign on with an Energy Retailer! In terms of their hydro utility, those that stay at home during the day can opt-out of the Smart Meters and revert to flat rate.
With energy deregulation more recently under way, its future appears just as bright. Now that healthy competition has become part of the utility industry equation, energy customers are exercising their power to choose. And because energy is something everyone uses, the energy industry is now a prime business opportunity. This translates into millions of customers who have the power to shop for the best buy in energy service.
It’s Up to You… 
You can shop around to find the product that’s best for you! You have a choice. Find out how much money we can save you on your energy rates by speaking with an Energy Retailer today.
