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What’s the Difference Between an Energy Supplier Vs. Utility Company?

By NOPEC on May 21, 2019

With so many energy suppliers, it can be really confusing to navigate all the options available and terminology. One of the most common questions among energy consumers is understanding the difference between an energy supplier (also called Competitive Retail Electric Service or CRES provider) and a utility company (also called Investor-Owned Utility or IOU)—and keeping up with all the names and acronyms.

Understanding how the two work together can make a big difference in your overall confidence as you shop for energy suppliers. In order to make an educated choice, we broke down the difference between an energy supplier vs. utility company.

What is a Utility Company?

Utility companies deliver natural gas or electricity to your home. They take energy from an energy supplier and send it to your home through the power lines and gas lines they maintain. So, for example, when your power goes out, they’re the ones you call.

What is an Energy Supplier?

While utility companies deliver you gas and electricity, energy suppliers provide the energy that utility companies and you rely on.

Since 2000, Ohio allows for the deregulation of energy supply, meaning the choice of energy supplier is up to you. While you’ll still receive your electricity and gas through your local utility company’s infrastructure, energy deregulation gives you, the consumer, the ability to choose an energy supplier based on the criteria that matter most to you.

Choose the Best Energy Supplier

Too often, energy suppliers will offer gimmick giveaways for short-term deals but no long-term guarantees of continued savings. As Ohio’s largest nonprofit energy supplier, NOPEC protects your energy investment by negotiating consumer-friendly terms regarding renewal and price adjustments to ensure you get competitive rates and terms all year long, year after year. We’ll teach you to be more energy efficient and continue to advocate for consumers by educating state and national legislators about the many benefits of energy aggregation.

NOPEC has saved residents and small businesses hundreds of millions of dollars on their energy costs. Best of all, our communities don’t spend a dime for our services. Find out how you can become a NOPEC community.


Tags: NOPEC, Energy Aggregation, Energy Efficiency, Ohio
Categories: Consumer Questions

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