A power utility company provides natural gas and electricity to homes and businesses. In the past, they took care of production, transmission, distribution, maintenance, repair and safety of all the equipment and systems needed to deliver these services to your home. They had a monopoly over both supply and delivery of electricity and/or gas in their service territories.
In the early 1990s, that began to change. One by one, some states deregulated energy markets—giving you, the customer, the option to choose which provider and plan best suits your needs. Today, residential customers in 17 states and the District of Columbia enjoy some level of energy deregulation and energy choice.
Electricity utility companies still exist, yet markets for retail power are quite different in many areas. In deregulated markets, utility companies own the infrastructure for delivering electricity and gas to customers. Competitive retail energy providers buy electricity from wholesale generators and sell it to customers, competing with each other to provide the best plans, prices, renewable energy options, and customer service, along with additional benefits and incentives.
In some deregulated states, the utility provider may also offer supply service, known as default service or standard offer supply, to those customers who do not select a competitive energy supplier.
It is important to know who your utility company is, so that you know where to report an outage or service interruption. If there is an emergency, such as a gas leak or a downed power line, or if your equipment needs service, they are the ones to call.
That said, if you buy your electricity from a retail energy provider, you may not know who your utility company is. You can find out by taking a look at your electricity and gas bill. It will identify your utility supplier and typically separates out their distribution charges and fees.
What is an energy supplier or provider?
A retail energy provider is a business or entity that sells energy, such as electricity and natural gas, to consumers. Retail energy providers may buy energy at wholesale from producers, or they may operate their own power plants, such as nuclear generators or wind and solar farms.
They compete to earn your business based on plans and pricing, contract terms and additional services. They may offer fixed- and variable-rate options, access to renewable energy and flexible plans that can save you money, depending on your usage habits. They also work hard to provide excellent customer service and attractive loyalty programs.
What’s the difference between an energy supplier and a utility?
Is an electricity company the same as a utility? In deregulated markets, the company that markets energy to you is different from the company that is responsible for delivering it to you and maintaining the delivery infrastructure.
Unlike utility companies that offer the same rates and contract terms to everyone, retail electricity suppliers offer you a choice of rates and terms for your home energy options. You can, for example:
- Lock in rates for longer periods of time than the utility provides.
- Take advantage of time-of-use pricing and save money by shifting your usage to off-peak periods.
- Choose renewable or clean, carbon-free energy sources like our nuclear-powered clean energy plan available in Washington, D.C.
To win and keep your business, competitive energy providers are always looking for ways to innovate when it comes to service and technology.
How do retail energy suppliers and utilities work together?
