Markets
Energy Deregulation
Market structure that lets customers choose their energy supplier.
Definition
Energy deregulation separates the competitive supply of energy from its regulated delivery, allowing customers to choose their supplier.
Detailed explanation
In deregulated (competitive) markets, the utility continues to deliver energy while suppliers compete to sell the commodity. Deregulation exists for electricity and/or natural gas in a subset of U.S. states.
Why it matters
Deregulation is what makes commercial energy procurement possible — and why service availability varies by state.
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