Deregulation is the process of removing or reducing state regulations. It is therefore opposite of regulation, which refers to the process of the government regulating certain activities.
Energy prices are not regulated in these areas and consumers are not forced to receive supply from their utility. In deregulated markets, consumers can choose their supplier, similar to other common household service providers. The marketing of these services is still regulated.
Deregulation In the late '90s, Illinois decided to deregulate its energy market to allow consumers a choice in their supplier of electricity. More recently, since suppliers have recently been able to do their billing in conjunction with the utility, there are now many Retail Electric Suppliers (RES) providing less expensive and greener electricity alternatives for residents and businesses. Customers can still choose to receive their electric supply from the utility -- ComEd or Ameren -- or from one of these new alternative Illinois retail electric suppliers. Suppliers are often able to offer lower rates because they're able to buy electricity more frequently than the utility, and they can better estimate the amount to purchase because they have fewer customers than the much larger utilities.
Save up to 21% on your Illinois Electric Bill If you're an Illinois resident, you've probably noticed that your electric bills are broken down into two main parts. One is supply (where your electricity originates) and the other is distribution (how it arrives to your home, via the physical power lines). When you "switch" your electricity through Power2Switch, you are simply replacing one supplier with another. Distribution will always be handled by the utility company, such as ComEd or Ameren, so there is never an interruption in service when you switch suppliers. It can be confusing to sort through all of the suppliers and plan options, and that's where we can really help. Power2Switch enables you to compare electricity providers, choose the best rate and plan for your situation, and easily make the switch through our site - all at no cost to you.
Save up to 21% on your Illinois Electric Bill If you're an Illinois resident, you've probably noticed that your electric bills are broken down into two main parts. One is supply (where your electricity originates) and the other is distribution (how it arrives to your home, via the physical power lines). When you "switch" your electricity through Power2Switch, you are simply replacing one supplier with another. Distribution will always be handled by the utility company, such as ComEd or Ameren, so there is never an interruption in service when you switch suppliers. It can be confusing to sort through all of the suppliers and plan options, and that's where we can really help. Power2Switch enables you to compare electricity providers, choose the best rate and plan for your situation, and easily make the switch through our site - all at no cost to you.
How Green is Illinois?Based on our data, here's a breakdown of how many people are switching to green electricity plans in Illinois.
Illinoisans switching to green plans
In Illinois, % of people have switched to a plan that has some renewable energy component to it. Another % have switched to a plan that is partially renewable, while % have switched to a plan that powers homes completely by renewable electricity. This of course means that % of people have remained on a plan powered by traditional sources of electricity such as coal or nuclear power.
Another huge benefit of switching your supplier from ComEd or Ameren is the opportunity to take advantage of renewable energy. It's now possible to have your home powered entirely by electricity generated by wind farms and solar panels!
In Illinois, % of people have switched to a plan that has some renewable energy component to it. Another % have switched to a plan that is partially renewable, while % have switched to a plan that powers homes completely by renewable electricity. This of course means that % of people have remained on a plan powered by traditional sources of electricity such as coal or nuclear power.
Illinoisans switching to green plans
- Completely Green: 0.8 %
- Partially Green: 16.4 %
- Traditional: 82.8 %
In Illinois, % of people have switched to a plan that has some renewable energy component to it. Another % have switched to a plan that is partially renewable, while % have switched to a plan that powers homes completely by renewable electricity. This of course means that % of people have remained on a plan powered by traditional sources of electricity such as coal or nuclear power.
Another huge benefit of switching your supplier from ComEd or Ameren is the opportunity to take advantage of renewable energy. It's now possible to have your home powered entirely by electricity generated by wind farms and solar panels!
In Illinois, % of people have switched to a plan that has some renewable energy component to it. Another % have switched to a plan that is partially renewable, while % have switched to a plan that powers homes completely by renewable electricity. This of course means that % of people have remained on a plan powered by traditional sources of electricity such as coal or nuclear power.
Electricity rate history Source Wolfram Alpha
A major question you should consider when deciding whether to switch electricity providers is: "What will happen to electric rates?" This can be a tricky question to answer as rates are perpetually in flux. In the short-term it's difficult to predict exactly what will happen to rates, but when looking at a longer term picture things become a bit more clear. Based on the graph above, electric rates in Illinois have been steadily increasing over the past decade. Assuming this trend continues, the best way to protect yourself from increasing rates is to switch into a 12-month or 24-month plan and lock into a low rate What is the deregulation of energy?
Over the last several years, a number of states have begun to change the regulations in the energy industry to enhance competition between energy providers. The deregulation of energy has divided the utility company monopolies by separating the production of energy from it’s distribution. This separation creates more competition. Prior to this deregulation, both electricity and natural gas were provided by local utilities or regional monopolies that controlled both the power generation and distribution channels for delivery. Energy suppliers, working with Energy Service Companies or ESCO's, now have the ability to provide a variety of choices for service and rates. The concept is to separate or deregulate the production of energy and allow customers a choice as to where they purchase their power (just as they can select their long distance phone carrier). The neighborhood utility company would still provide the power distribution, as they do today over their lines. From the customer or end user’s perspective, nothing will change. There will be no interruption of services, their current utility provider still maintains service and bills the customer’s account. It is possible that the consumer may receive a separate bill from the energy provider instead of one bill from their utility company. |
Will you benefit from the deregulation of energy?
The deregulation of energy will be bigger than the internet according to legendary CEO Jack Welch in a recent CNBC interview. But how can you, as an individual benefit? While the opportunity to save money by lowering your bills with energy deregulation is fantastic, there is also a tremendous opportunity to generate income by helping individuals, small businesses, and large corporations save money on their utility expenses by educating them about their energy choices. What states have initiated the deregulation of energy?
Deregulation is taking place on a state by state basis. Some states are fully deregulated for electricity and natural gas, while others may be deregulated for one or the other. Some states have not begun to implement any kind of deregulation. The map below shows the deregulation of energy status on a state by state basis. |