Previously, New Jersey energy choice was more limited. Homeowners and businesses were limited in their choice of utility supplier. However, that all changed when energy deregulation began. It allowed energy companies to provide competitive product choices for electricity supplies. The New Jersey law says that the supply and energy portions of a bill for gas or electricity need to be separate. This means that you can compare prices for your energy to find the best one for you. Anyone considering changing their energy supply can compare the choices they have available and get the best deal, instead of being limited to only one option.
The Beginning of Energy Deregulation
Energy deregulation began in New Jersey in 1999. At the time, only a few states had begun to deregulate electric utilities. Before making any moves, New Jersey made sure to take a look at states that had already chosen to deregulate their utilities. By doing this, they could work out what was working and what they might have to do differently. For example, they were able to see that in California the price point for electricity had been set too low. They decided to set a price of 5.3 cents per kilowatt for NK electric rates. This was half of what people had been paying previously, so it gave plenty of room for competition.
New Jersey legislators also observed what was going well in other states that had chosen energy deregulation. For example, in Massachusetts, it was easy to buy energy in bulk so that it could be better value. However, when New Jersey used this principle, they improved on it so that it could benefit consumers, as well as businesses. Another choice that New Jersey made was to let everyone access competitive energy rates from the start. Other states chose to roll out their new prices gradually.
Greater Choice Today
Residents in New Jersey now have a much better choice of both gas and electricity suppliers. They can access competitive prices from a range of companies so that they can save on their bills. It's especially useful to compare prices if your household uses a lot of energy each month. Looking at different suppliers is useful for commercial or industrial customers too. They may end up paying extra if they choose to use their utility and have high energy usage rates.
Energy deregulation offers greater choice for consumers. However, it also means that choosing an energy supplier can be a little confusing. There are several things to consider, such as the contract type and any fees you might have to pay. Using a comparison website makes things a lot easier. You can look at different elements of energy products side by side so that you can work out which one is best for your needs. It's worth looking at the different deals that are available if you want to ensure you keep your energy spending as low as possible.Energy deregulation has made more choices available to anyone buying energy products. Make sure you check what deals are available for you.