We launched a new product this month, the 5Linx Energy Program, and the response has been pretty overwhelming.
It’s so great to see many of us are finally getting aware of energy savings. And I don’t mean just the savings on money that’s involved but also with energy conservation in terms of using up less than what we consumed in the past because the program has made us more aware of what our energy requirements do to the environment and the planet we live in.
Not many understand how deregulation works, how it can save us money and how we help protect our planet through it.
Energy deregulation gives us the power to choose our energy supplier. This power of choice impacts us as consumers in 3 ways:
We can choose the supplier with the cheapest rates, thus making it possible for us to save hundreds of dollars on our electric bill month after month which takes effect as soon as we switch. Before deregulation, we had no choice but to put up with the high prices and the numerous price adjustments that our local utility provider charged us.
We can choose the provider who can offer us the best terms, thus giving us price protection and other benefits (rewards program) throughout the contract period. This is huge as this safeguards us from sudden changes in economic conditions. Some contract agreements can grant price protection for as long as 3 years or more, allowing customers to enjoy fixed rates on energy costs despite the rise and fall of the global fuel prices. Before deregulation, we didn’t have any choice but to tolerate the price increases month after month.
We can choose a supplier flexible enough to work with us according to our individual energy savings strategy. This means we can choose energy-saving products or alternative fuel sources that we feel can supply our energy requirements without compromising quality as well as meet our convictions towards going green and protecting the environment, while at the same time allowing us to save money. Before deregulation, we were stuck with what was provided and because we didn’t have the power to choose alternative fuel products we could not contribute towards environmental protection.
How does deregulation save us money? In deregulation, retail electric suppliers buy electricity wholesale from Energy Service Companies or ESCO’s (who buy it from power plants, wind farms, mining/drilling companies and other sources that create electricity or obtain natural gas) and redistribute or resell this to consumers at competitive prices. Because the electricity is purchased in wholesale price, the savings in purchase costs is passed on to customers by way of cheaper rates. Consumer savings can add up to 10-20% month to month especially during the winter when the heaters are in use, and during the summer months when air-conditioning is in full blast.
The main concern of consumers when choosing to switch energy providers is experiencing service interruption. The only thing that changes when we choose our own provider is the source of electric supply. This means we buy our supply of electricity from the supplier who bought the electricity for us from a direct source. The local utility company will still handle delivery through its pipelines, deal with meter readings, monthly billings and service repairs. The service layout remains as is, the only change that happens is where you buy your electricity from. Take a look at the process above to help you understand better.
Bottom line: With energy deregulation, you get the same electricity, it just costs less.