An overview of Energy Deregulation


Deregulation: Is the act or process of removing or reducing state regulations.

Ambit Energy's View: You have the power to choose.

Energy deregulation can sound complicated. But for energy customers, these ground-breaking industry changes come down to one crucial concept: CHOICE.


New Economy, New Rules Deregulation is changing the retail energy market. Competition is replacing monopolies. Consumers now have a choice of providers. We want to be the provider of choice for customers who are excited about the opportunity to save money and improve their level of service. We are confident that in putting our customers first we can realize our vision to become the finest and most respected retail energy provider in the United States. People generally appreciate a variety of options where they must spend their money. Texas, New York, Illinois, Maryland, Pennsylvania, New Jersey, Connecticut, Massachusetts, Washington D.C, California, Rhode Island, Delaware, New Hampshire, Virginia and Maine now allow competition for both residential and commercial customers. Other states will be following in the months and years to come. The energy market nationwide is over $1.6 trillion annually.

The Federal Energy Regulatory Commission passed the Act in 1996, opening the industry for multiple retail providers. The result was a significant drop in price and a bevy of options for consumers. In 1996, New York and California were first to set the pace and open deregulated markets to business and consumers. The next year, Pennsylvania and Illinois make the switch. Soon they are joined by Massachusetts (1998), Maryland and New Jersey (1999), Connecticut (2000), Washington D.C. (2001) and Texas (2002).

The deregulation of energy has divided the utility company monopolies by separating the production of energy from its distribution. Under deregulation, the delivery of energy is still regulated and is the responsibility of the local utility company. But customers now have the freedom to choose their energy supplier. By opening markets to competition, pricing is now based on market forces, not government mandate. Now energy customers can shop for the best rates. From the customer, nothing will change. There will be no interruption of services, their current utility provider still maintains service and bills the customer’s account.


Take Charge Customers have responded overwhelmingly to this freedom by switching in large numbers from the old incumbent utilities to alternative energy suppliers. As a result, Ambit customer base has grown over 1 million happy customers since the beginning of 2007.

With energy deregulation more recently under way, its future appears just as bright. Arizona, Arkansas, California, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, West Virginia, Wyoming and Washington, D.C., are currently in various stage of deregulation. This translates into millions of customers who have the power to shop for the best rates in energy services.


We believe Ambit Energy is the best choice for residential and commercial electricity & natural gas customers in the deregulated markets for four simple reasons:

  • 1 It is absolutely safe to switch.
  • 2 The savings with Ambit Energy are impressive.
  • 3 The rewards for being our loyal customer are incredible.
  • 4 Your satisfaction is guaranteed.
Energy Deregulation: How Competition Powers Consumer Choice