What is an Energy Supplier?
Your energy supplier is someone who sells energy to you. Your energy supplier may be the same person or different, depending on if you live in a regulated or non-regulated energy market. In both cases, it really all depends upon if you live in a regulated or non-regulated energy market.
In a regulated energy system, your energy supplier is the main utility company for the area. In most cases, you will use their services. They bill you for their services. In most cases, when using their service you are also subscribing to their rates, and sometimes even receiving them in the form of fixed rates. If you live in one of the many deregulated energy markets around the world, this isn’t usually the case. You are your own utility provider.
fixed and variable rates
The regulated market allows energy suppliers to charge both fixed and variable rates. In the case of fixed rates, the prices stay the same all through the billing period. In the case of variable rates, energy suppliers can adjust the price at any time during the billing period. However, in most cases, it is better for consumers (like you) to get your gas and electricity from a company that is not regulated, as you won’t need to worry about seeing increases in your monthly bills.
Does This Mean That I Can’t Change My Gas Or Electricity Provider When I Live in a Deregulated Energy System? No! As previously stated, your energy supplier is not a government organization and is not required to be licensed by your government. So, while deregulation might mean changes to your utility providers, they will not always be made according to what you want. For example, in some areas, your energy supplier may decide to increase rates to undercut competitors, which means that when it comes to choosing a gas and electricity provider, you will have more choices than ever before.
How Will Changes in My Rates affect me?
Most significantly, deregulation will change the rates that you pay for both utilities. Generally, the amount that you pay for both utilities tends to increase when deregulation takes effect. However, this doesn’t mean that your monthly bills will suddenly go up. Depending on the area in which you live, you may not see drastic changes. For example, in some parts of the country, electric utility companies are regulated by the states, meaning that there will be some variation in rates between different locations.
Will All Natural Gas Supply And Electricity Providers Be Deregulated? Currently, all natural gas supply and electricity providers are regulated by the states, with many choosing to participate in the deregulation process as a way of increasing their revenue stream. But, as a general rule, not all natural gas supply and electricity providers will be able to participate in the process. So, in the short term at least, you may have to settle for your current electricity provider.