The Choice: Understanding Your Options

How Energy Choice Works
Energy choice allows you to compare rates and additional service offerings from a variety of retail energy suppliers. Then, you can enter a contract to secure your energy at that rate for a defined period of time.

First, you should understand the cost components of your electricity service. Typically, your bill includes charges for three components.

Supply: Supply refers to the generation of electricity. This element of your energy service is deregulated to create competitive pricing based on the economic principle of supply and demand. Companies that generate electricity make their supply available through the competitive, wholesale market. These rates will fluctuate based on a number of factors, such as weather and market conditions for other commodities.

If your business is located in a deregulated market, you can choose a retail energy supplier (or provider) to secure supply from the wholesale market on your behalf at the most favorable rates available.

Transmission: Transmission refers to the transportation of the large electricity supply from its source (e.g., a power plant) to the utility’s receiving station. Transmission is regulated by the government to ensure the reliable delivery of energy.

Distribution: Distribution refers to is the transportation of electricity from the receiving station to your business via wires and pipelines. Distribution is also regulated by government agencies.

Energy choice gives you the option to compare the rates, services, and contract terms offered by retail energy suppliers so you can choose a contract that’s best for your business. Your regional utility continues to service the transmission and distribution portion of your electricity and natural gas bill. Your retail energy provider will process your invoicing and payments, and your bill should clearly describe the costs associated with each component of your energy costs.

What Deregulation Means
Deregulation is the process of replacing a monopoly system of electric utilities with competing sellers, allowing individual retail customers to choose their electricity supplier but to still receive delivery over the power lines of the local utility. In the case of the electric industry, this involved the unbundling of the generation portion of electricity supply from the transmission and distribution portion provided by utilities to allow suppliers to compete to provide electricity generation to consumers.

Though the word 'deregulation' may suggest that retail energy suppliers operate without rules or standards. This is untrue. Retail energy suppliers must be licensed by a government agency to operate within each service area.

Direct Energy Business Works for Your Business
Competitive energy markets were created to provide consumers with better options for securing their electricity supply. At Direct Energy Business, we help our customers realize the promise of energy deregulation by putting competition to work for you. We are committed to helping you understand your choices, so you can select an energy solution that’s best for you.

Learn about our streamlined process for choosing Direct Energy Business as your retail electricity supplier.