Our MarketsVoyager Power Markets include Massachusetts, New Hampshire, Connecticut, New York, and Rhode Island. New England is well ahead of much of the nation in deregulating its wholesale electricity markets. It was one of the first regions in the United States to open its marketplace to competition. Energy Deregulation offers you the customer the opportunity to shop for the best energy supplier and rates.
Throughout the 20th century, control of the energy industry rested with a large group of regional monopolies-companies that were the sole providers of the supply and delivery of electricity for the areas they served. Because of the importance of these services to the public, these utilities were heavily regulated by the government. Since the mid-1990s, a number of states and provinces have deregulated their electricity markets, allowing competition in the industry. This means that customers in those territories can choose an alternative electricity provider (different from their utility) to seek competitive rates and choose electricity products that make sense for their business.
What States have Energy Choice?Almost half of the states have passed some legislation or regulations to restructure their electric power industry. Ultimately, once the federal government passed the initial legislation around deregulating power generation, it has been up to the individual states to decide whether deregulation is in their best interest and to how they wish to implement deregulation within their borders.
According to the EIA, states that historically had higher-than-average power prices, such as California, Pennsylvania, New York, and most of New England, were among the first to open their retail electricity markets to competition, while other states began with a limited number of consumers. One of the major goals of electricity deregulation is to lower the price for electricity by opening power generation up to competition.
Why is Energy Choice Good for My Business?"Opening up" a market fosters a climate that encourages suppliers of goods and services to provide more options to consumers, in order to stay competitive. In the case of power, "options" can include things like price, term, service and billing/payment cycles. When a market is more competitive, it also encourages innovation and customization to meet the needs of the marketplace.
Energy suppliers have the flexibility to make purchases in the wholesale market at various points in time that can, like any fluctuating market commodity, present more or less savings benefit to their customers. However, utilities who provide default electric supply service typically have less flexibility in their wholesale purchases and therefore typically offer fewer optionsWhy Choosing a Supplier Can Benefit Your Business Although your local utility can supply your power through their "utility default service" plan, you may be able to obtain better rates, terms and services by choosing a competitive supplier, instead of taking supply service from the utility.
- Suppliers have flexibility to make purchases in the wholesale markets when favorable market conditions exist and can then pass that savings on to customers.
- Utilities are limited as to how and when they can make purchases and therefore can offer very limited choices to customers for supply service.
- Utility service rates are set for a period of time but then may change without notice once a new tariff passed.