Everything One Should Know on Texas Deregulation

The Texas energy market went through a major revolution in 2002. Senate Bill 7 went into effect, which resulted in the deregulation of the energy sector. No longer could utilities determine the price of electricity. As supply and demand affects all other aspects of business, it now also affected the energy market. Prior to deregulation, utilities managed the price of electricity as well as its distribution, but after SB 7 took effect, retail electricity providers (REPs) could sell electricity to consumers. This drove Texas electric rates down, thanks to the competition between retail energy providers.
REPs all offer different plans and different rates. Some of the plans are month to month variable plans, where each month, your electricity rate per kilowatt hour could go up or down based on the market. They also offer fixed rate plans, where you lock in your rate for a set period of time, usually anywhere between three months and three years. Even if the market conditions change, your rate will stay where it is. These plans make it easier to budget your monthly expenses, but if you decide to back out of you plan before your contract expires, you could be hit with a cancellation fee.
In addition to the standard plans, REPs give you the power to choose green energy plans as well. Each plan on a REP’s website has an Electricity Facts Label (EFL) and this includes information on how much of the electricity coming to your home or business comes from renewable sources.
The primary goal of deregulation was to break the hold that utilities had over energy consumers. With more choices, people have more control over their electricity. Everything from cost to the type of electricity used can be picked based on your preferences. And Shop Dallas Electricity can help you jump into the market and pick the plan that works best for you.

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