You’re undoubtedly interested in regulating your household budget, as are the majority of us. Retail energy is more complicated than water, internet, cable, or phone services. What exactly is a retail energy company? Contact (877) 597-1578 now! We’re here to help you answer the question, “Do All Energy Suppliers Provide The Same Quality Services?” as well as better understand the difference between gas and electric companies and a utility so you know who provides your services, how they do it, and what your options are in the retail energy market for your home.
Getting a Glimpse of the Retail Energy Market
If you’re trying to navigate the retail energy market, knowing who’s who is a good place to start. You’re probably most familiar with your power company. But what exactly is an electric utility?
– Cables that provide energy to your home or business are owned and operated by the utility.
– The utility will respond if there is a power outage or an emergency.
– Utility reads your electric meter to determine how much energy you use each period.
What is a retail energy company?
Retail energy firms, also known as retail energy suppliers or providers, can help you lock in your energy pricing per kWh. It may also provide extra energy options (for example solar).

What exactly is energy competition?
In the early 1990s, federal rules expanded the retail energy market, providing consumers more electricity and natural gas providers. Some state legislatures later followed suit, but not all states permit energy competition. Before you start shopping around for energy rates, you need to find out if your state has energy competition.
How Do Retail Energy Suppliers and Utilities Collaborate?
Your utility company handles everything connected to energy service and delivery to your home. Your tariff and contract period are determined by retail energy suppliers, also known as retail energy providers.
What Are The Advantages of Using Retail Energy Suppliers?
This brings us back to the original question: “What is a retail energy company?” Remember, this is how you achieve a competitive energy supply rate. You generally have options for setting up your rate when working with retail energy suppliers. Retail energy suppliers, for example, may offer you the option of a variable or fixed-rate plan. Depending on where you reside, a fixed-rate plan lets you lock in a set energy supply rate for your term.
What Exactly Is An Electric Utility, and How Does It Supply Energy To My Home?
So, how does the energy grid work? There is a lot of technology involved, but the procedure is simple when broken down into steps.
- A power plant generates electricity. The electricity is generated by a generator, which can be powered by fossil fuels, wind or solar energy collected from solar panels or wind turbines, or nuclear reactors.
- The electricity is routed to substations, where transformers convert it to high voltages, allowing it to travel large distances along lines.
- When power is carried down those lines, it is distributed to homes and businesses.
- Finally, power reaches its consumption point. You are the end consumer of electricity every time you turn on a light or plug in a device (or when your 24-hour appliances like the refrigerator or HVAC system are turned on).
The other way natural gas is consumed is when it is utilized to generate electricity. In that situation, natural gas is used to generate electricity before the energy is delivered to your home, which is why the utility, regardless of who sources it, is responsible for delivering energy to your home.
Why Should You Use Allied Power Services?
Ultimately, you want to be able to have continuous electricity delivery to your home or company at a rate that fits your budget. If you live in a state with a competitive retail energy market, you have several options. That can be confusing, but perhaps what you’ve read has helped to clarify the distinction between gas energy companies, a provider, and a utility, allowing you to better understand how your home is powered—and Is It Safe To Choose Any Natural Gas Servicer In My Area? Contact our Allied Power experts at (877) 597-1578 immediately to learn more on how to control your energy costs.