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What Is a Deregulated Energy Market?
Residents in deregulated energy states have the power to choose their electricity suppliers and plans.Written by Dominique Sabins
Edited by Jamie Cesanek
Last updated 08/21/2024
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Key Points
- Eighteen states and the District of Columbia offer electricity deregulation, meaning consumers can choose their energy provider and plan.
- In deregulated states, you can choose your energy supplier but not your utility company because it is based on your location.
- The SaveOnEnergy marketplace can help you find the best electricity option for you. Enter your ZIP code to explore deregulated electricity plans in your area.
Deregulated energy by state
| California | Connecticut | Delaware | Georgia |
| Illinois | Maine | Maryland | Massachusetts |
| Michigan | New Hampshire | New Jersey | New York |
| Ohio | Oregon | Pennsylvania | Rhode Island |
| Texas | Virginia | Washington D.C. |
Deregulated energy FAQs
Energy deregulation allows consumers to choose their electricity provider. Unlike regulated states, where you must buy electricity from your local utility company, deregulated areas allow multiple energy providers to compete for your business by offering affordable rates.
There are several different types of energy plans, such as fixed-rate or variable-rate plans. Energy contracts tend to range between 12 and 36 months, but shorter options are also available. Once you sign an energy contract, you are locked into your energy plan for the duration of your contract. Be sure to check if your contract has any early termination fees if you need to end your contract sooner.
A good place to start is by understanding your energy usage. Use our guide to calculate how much energy you use monthly to help you pick a plan that meets your needs. Once you know how much energy you use, enter your ZIP code on the SaveOnEnergy marketplace to explore plans in your area.
Deregulated energy markets do not necessarily make energy cheaper. However, you do have the power to choose your energy plan and compare prices. Enter your ZIP code to explore prices to find the cheapest rate in your area.
Eighteen states and the District of Columbia offer some form of deregulated electricity. Your state may also have deregulated natural gas, electricity, or both.