Want to know more? Our FAQ addresses common
concerns about deregulation, and how to choose
an energy consultant to represent your interests.
What is deregulation?
Deregulation makes it possible for energy companies to compete for your business. In most states where it has taken place, deregulation meant breaking up the monopolies and theoretically generating lower prices and innovation for the consumer. Bottom line, deregulation helps bring cheaper and better energy services to all retail electric customers.
What are the benefits of deregulation?
Competition in other industries has often brought lower prices and innovative products and services. More options let you determine what matters most to you – price, renewable energy, customer service, or other factors.
Energy competition also encourages the use of energy from renewable energy sources, such as wind, solar, hydroelectric, and biomass (gas released from landfills). And that's good for the environment as well as business.
What has stayed the same since deregulation?
Your current Transmission and Distribution Service Provider (TDSP), often referred to as your "local wires company," still delivers electricity to your business, responds to service interruptions, and maintains equipment. Your choice of energy provider will not affect your service level. Generally, the same applies to natural gas in deregulated states.
What has changed?
You can buy your electricity from any electric company in your area. These companies are commonly referred to as Retail Electric Providers (REP's) or Electric Service Providers (ESP’s).
Additionally, your bill may look different from bills you have received in the past, but it still covers the same standard information. In some states, you may receive one bill including both supply and delivery charges; in others you'll get separate bills from your energy provider and your local transmission and distribution company.
Do all companies have the right to choose their energy provider in a deregulated state?
No. Each state has different rules and regulations. In some states, city-owned utilities and member-owned electric cooperatives have the option of giving their customers a choice of providers, or keeping their grid closed to outside competition. To see what rules apply in your area, please call us at 888-405-8702.
With competition, will the reliability of my service change?
No. No matter which energy provider you choose, your service will continue to be delivered safely and reliably and will be regulated by the PUC within each state.
Do I have to switch from my current energy supplier?
No. If you decide not to choose a new energy provider, your service will be provided by the incumbent or default provider at what is known as the default or standard offer rate, as defined by each state’s rules and regulations. In most cases, this rate is set higher than competitive market rates to encourage competition, though not always. Working with Tier1 Energy is a great way to be sure you’re getting the best rate in a deregulated market, regardless of who your supplier is.
Why should I request a free price quote from Tier1 Energy?
As a consulting firm that brokers electricity and natural gas, Tier1 Energy has the flexibility to look at a wide variety of providers and find the best prices and products available across the entire market to fit your individual needs. Customers who have worked directly with a single energy provider often find they have limited pricing and product options available from that single provider. We are typically able to lower our customers' electricity costs by 20% or more.
Do you handle residential as well as commercial clients?
Residential customers should consult our residential page, which links you directly to an automated but highly efficient system that will help you find the lowest rate for your home electricity needs.
In what states does Tier1 Energy offer its services?
Tier1 Energy is active in all currently deregulated states. As more states opt for deregulation, we will offer our services in those states as we are able to by law.