How Energy Laws Brightened New Jersey
Have you heard the good news? Star Energy Partners recently expanded into New Jersey! Our expansion into the land of Liberty and Prosperity was made possible because New Jersey is one of many states that have energy deregulation laws, allowing retail energy suppliers like us to bring you great energy prices!
Here is the story of New Jersey’s path to energy deregulation, 17 years in the making!
What is energy deregulation?
Simply put, energy deregulation means competition between retail energy providers and lower energy prices for energy consumers.
In a regulated energy market, energy customers only have one option for receiving their electricity. This system doesn’t provide consumers with any agency or choice whatsoever. On the other hand, a deregulated energy economy offers consumers the option to choose an energy provider. Having more than one game in town creates competition, and that inevitably drives down the overall price of electricity in deregulated energy markets.
New Jersey’s journey to energy deregulation
It all started in 1999, when the New Jersey Board of Public Utilities introduced a bill to deregulate the state’s energy industry for residential customers. The bill, which would become the Electric Discount and Energy Competition Act (EDECA), gave New Jersey energy consumers all the rights of a deregulated energy economy: the ability to shop around for the best energy provider based on their budget and energy requirements.
Conectiv, an independent utility provider based in Carney’s Point, says that deregulation has lowered their customers’ rates by 10.2% and saved them roughly $290 million in the four short years since the act’s inception.
The transition wasn’t quite as simple as that, though. While the energy delivery companies (or Energy Service Companies) have largely stayed the same, the way energy is transmitted to consumers has changed. Third-party suppliers are now the ones in competition with other companies who used to dominate their markets. This, along with legislation and oversight to keep healthy competition alive, is what has led to lower prices for New Jersey residents.
If you want to learn more about the history of energy deregulation in New Jersey, check out this insightful article from The New Jersey Cooperator! You can also learn more about the many benefits of energy deregulation for electricity consumers on our Bright Insights blog!
