Energy Deregulation & Strategic Procurement
Energy bills consist of three main components: supply, delivery, and government taxes and fees. While most businesses can’t adjust the delivery and taxes portion, they can make an impact on the largest portion of their costs – supply.
Regardless of where customers procure their supply of power or natural gas, the utility still owns and operates the infrastructure, measures the usage and handles outages. If you don’t actively choose a retail energy supplier, the utility typically acts as the default.
In deregulated markets, customers can competitively shop for supply considering market timing and products best suited to their company. This allows them to take a strategic approach to what is often one of their largest expenses.
Deregulated Energy Markets
Image and Map Provided by FERC https://www.ferc.gov/power-