For decades, commercial electricity customers did not have any choice in who they could use as their commercial energy supplier. To make sure that there was a unified distribution network of power grids throughout the different regions of the United States, the government allowed for monopolies to be set up by the utility companies in each region. But when energy costs stated to get out of control, the government introduced deregulation that used competition to drive prices down.
Deregulating the commercial electricity distribution system suddenly gave businesses options not only for where they would get their power but also in the types of services they could access. Deregulation is done at the state level, and businesses in New York, New Jersey, Connecticut and Massachusetts all have ways they can save money thanks to this government program.
What Is Deregulation?
When a state decides to deregulate the cost of commercial energy, it is allowing every business to compare the various energy rates through various providers to find the one company that offers the best deal. The very first way that deregulation can help companies to reduce electricity costs is to give companies a choice when it comes to an energy provider. Instead of having only one utility to choose from, businesses can now compare rates among many different companies and save money.
Saving Money with Provider Promotions
Deregulation creates competition, and that means that the various energy providers will do whatever they can to earn your commercial electricity business. Prior to deregulation, the regional utility companies had no incentive to offer promotions and loyalty bonuses to attract clients. Now that competition is part of the equation, businesses can take advantage of the promotions that providers offer from time to time.
Bonuses from energy suppliers include discounted rates for larger commercial clients to rebates for paying bills on time. Business owners need to compare the programs each energy provider offers to find the one that gives the best options for saving money throughout the year.
Get Green Energy
Environmentally friendly business practices put money on your company’s bottom line because of the growing number of consumers who want to patronize an environmentally conscious business. When you compare energy rates in your area, you will also find companies that offer environmentally friendly, or green, energy programs that help to preserve the environment.
Alternative energy sources are not only clean but the fact that they are renewable means that your chances of having extended power outages are very low. Your green energy gives you a marketing advantage over your customers and it is durable enough to stay online when other power sources might fail. Instead of saving you money, these forms of alternative energy will make you money that will inflate your company’s bottom line.
Always Exercise Your Right to Choose
One of the most significant ways that energy deregulation saves a business money is by always keeping the company’s right to choose in effect. As each year draws to a close, any business can compare the energy rates they are getting with their current supplier with the rates that are available. If a supplier comes up with a new billing or energy buying option that saves a business money, then the business has the option to switch to that provider.
In any industry, competition makes service better and rates lower. With the deregulation of energy, businesses can now demand higher service while enjoying lower rates. As new companies emerge each year and existing energy suppliers alter their programs to remain competitive, businesses can take advantage of the dynamic nature of the energy industry and find suppliers that offer the best deals.
Saving Energy in Massachusetts, New Jersey, and New York
Along with the ability to choose the supplier for their commercial electricity, businesses in the Northeast can also choose from a variety of other money saving energy programs. In Massachusetts, the Mass Save project can help businesses to design more energy efficient buildings, help to outfit buildings with more energy efficient equipment and even help to replace old equipment that is at the end of its life.
In New Jersey, the SmartStart program provides consulting on energy-efficient building upgrades and has programs that can help businesses to finance new equipment that will keep energy costs down. In New York, Con Edison’s Commercial and Industrial Energy Efficiency Program can help businesses to get incentives that will lower energy bills through energy efficient building remodeling programs completed by certified professionals.
Saving Energy in Connecticut
The state of Connecticut was one of the first to offer business state-level solar energy incentives, and it keeps its commercial electricity savings going with the CPace Program. Connecticut commercial property owners interested in remodeling their structures to be more energy efficient can get 20-year funding and a host of advisory services to make their projects a reality. The end result is that companies taking advantage of the CPace Program will save money every month on their energy bills.
One of the most important ways that prices for services are kept in check is through the use of competition. For decades, energy companies were not held accountable for their service or rates because their competition was legally eliminated. When the 1980s got underway, there was a movement throughout the United States to deregulate the energy industry and allow the benefits of corporate competition to take over.
These days, businesses can compare rates among the variety of providers to find the one company that will help them save money. As the need to stay competitive increases, suppliers are offering higher quality services while keeping prices down. Companies can take advantage of the regional and state energy incentive programs to save money, and pair that up with the benefits of deregulation to lower the overall cost of energy.
With energy costs under control, thanks to deregulation, businesses can focus more of their resources on growth and expansion. It is time to check out the energy supply options available in your area and see just how much money you can save every year.