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In the state of Texas and across the United States, people living and working in deregulated energy markets have the right to select the business energy supplier of their choice. Deregulated markets work like a reverse auction, with suppliers competing to offer the lowest rate.

Unlike regulated energy markets where consumers are essentially stuck getting energy from one provider, a deregulated market allows consumers to shop around for the most affordable and efficient plans for their business so they have more power.

Energy suppliers try to provide the most competitive rate possible for their customers based on the predicted use calculations and supply-demand algorithm. This energy is transported to homes or businesses through local utility companies. In regulated markets, consumers must use whatever supplier the utility defaults to, without the option of shopping the rates offered by the independent suppliers.

As one of the largest energy marketplaces in the state, Integrity Energy is here to help you navigate the different rates and offerings of the top-rated independent suppliers, including industry leaders such as Energy HarborAEPReliant Energy, and more Texas energy providers!

What is

Great question! The Public Utility Commission of Texas (PUCT) provides oversight of the Texas energy market. is the PUCT’s official website, and it lists all the suppliers available across the state.

Unlike Integrity Energy, the PUCT does not provide information regarding a company’s unique rate plans or customer reviews. With Integrity, you can see pricing for different plans and read feedback from existing customers to help you make a better business decision. And unlike Integrity Energy, the PUCT does not offer personalized and expert assistance in switching to a new provider and getting your commercial energy service set up from start to finish.

Deregulated Energy in the State of Texas

Texas is the energy capital of the United States and home to the greatest concentration of energy company headquarters in the country, so there are more options for business consumers than any other place in the country. The Lone Star state is one of many that offer residents and businesses their choice of Retail Energy Providers (REPs), but none do it like Texas.

The vast majority of Texans are serviced through these deregulated energy suppliers. Business and industrial consumers in the state have a great number of options when it comes to selecting an energy provider, which expands the power to choose energy in Texas. This benefits businesses in several ways, including:

  • Lower Rates: A large number of suppliers means increased competition in the deregulated market, which drives down energy rates for businesses and residential buildings alike.
  • Custom Billing Solutions: Flexibility in pricing and billing structure is another benefit of the deregulated market. Many suppliers offer unique or customizable pricing energy and electricity plans in an effort to stand out in a competitive market.
  • Enhanced Customer Service: Pricing isn’t the only point of competition for energy suppliers. Customer service increasingly sets suppliers apart from the competition, and consumers in deregulated markets enjoy premium service and sophisticated consumer platforms.
  • Greener Energy Options: Suppliers recognize that consumers want environmentally friendly energy options. Many business owners are looking to go green with alternative energy sources. The deregulated market allows consumers to select an alternative energy option like wind or solar power, helping them implement or create environmental goals for their business or industry.

Energy rates change with supply and demand

It’s important to remember that energy rates are highly volatile and change constantly, especially in a deregulated market. Finding the best electricity rate is important to minimizing your business’s energy costs. Using the right network of commercial electricity providers is key to making a sustainable choice for your business, and Integrity Energy can connect you to that network.

This connection will help minimize the fluctuation in energy costs by helping you find the best energy plan for you.

Things to Know About Business Electricity Rates in Texas

  • Small vs. Big Business: The Small Business Administration (SBA) defines businesses in Texas with less than 500 employees as “small,” whether they have 1 or 499 people on staff. Whether you are a small or large business will determine what kind of business energy rates you are offered.
  • Industry Defines Your Rate: Whichever category your small business falls into defines the commercial rate of electricity you receive. For example, a retail shop pays a different rate than an accounting office, a transportation company, or an industrial small business.

How are commercial electricity rates determined?

There are three costs that factor into how much providers charge:

  • Wholesale: This cost incorporates electricity production (running the power plant), transporting the electricity, and repairing and maintaining that equipment.
  • Supply: This is the charge you see on your electric bill as your usage in kilowatt-hour (kWh). It covers the costs of creating and moving electricity.
  • Delivery: This relates to the customer service and local distribution of commercial electricity.

Are Other States Deregulated, Too?

Yes! Currently, 16 states and the District of Columbia benefit from deregulated energy markets in some regard. Out of this list, 6 states, including Illinois, New York, Ohio, Pennsylvania, Texas, and the District of Columbia, have adopted deregulation for both their electricity and natural gas markets. The remaining states listed below are deregulated for one energy market, but not both. Current deregulated states include:

Because deregulated markets put the power of energy choice into the consumers’ hands, suppliers must win over their customers. This rivalry among suppliers can lead them to offer more competitive pricing and improved energy technologies (including renewable technologies) in order to earn the business of energy shoppers.

Integrity Energy is Your Partner in the Deregulated Energy Market of Texas

Whether you’re from Houston or El Paso, Integrity Energy is ready to partner with your business in finding the best energy rates and services for your bottom line in the state of Texas. With over 130 retail electric suppliers operating in the state, the options when choosing energy in Texas can be overwhelming. But the energy experts at Integrity Energy are knowledgeable and armed with an in-depth understanding of the markets (including AustinDallas and Forth Worth) and local electricity suppliers.

We prioritize your business needs and match you with a plan that provides consistent energy savings, while explaining unfamiliar terms and helping you navigate your new contract every step of the way. This allows you to feel confident in your energy plan without the stress of learning, understanding, and managing it all. We believe that keeping the lights on for your business should be as easy as flipping a switch!

Let Integrity Energy eliminate the complications and dig through the details for you. If you’re unsure where to start, contact one of our experienced energy consultants today!