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How is an Energy Supplier Different than a Utility?

We’re here to help you better understand the difference between an energy supplier and a utility so that you know who provides your services, how they do it, and what the options are for your home within the retail energy market.

If you’re trying to navigate the retail energy market, the place to start is understanding the difference between a retail energy company (or supplier) and the utility. You are likely most familiar with your traditional local electric utility.

What is an electric utility?

The utility owns and operates the wires that bring electricity into your home or business. If you have a power outage or emergency, the utility services those situations.he utility reads your electric meter to see how much energy you consume each period.

What is a retail energy supplier?

A retail energy supplier, or retail energy company like Constellation, can help you to secure your rate, or how much you pay per kwh, for your energy services. It might also offer additional options for energy (for example, renewable energy).

What is energy competition?

In the early 1990s, the federal government began to pass legislation to open the retail energy market in an effort to give consumers additional choices for electricity and natural gas providers. Some state legislatures then followed, but not every state allows for energy competition. Before you begin to shop around for energy rates, you will need to find out whether there is energy competition in your state.

How do retail energy suppliers and utilities work together?

Even if you switch from a utility to a retail energy supplier, your utility still takes care of everything related to the service of your energy and its delivery to your home. Retail energy suppliers—also known as retail energy providers—set your rate and contract term.

What is the benefit of using retail energy suppliers?

Using a retail energy supplier gets you a competitive rate for your energy supply. By working with retail energy suppliers, you often have options as to how you set up your rate. For example, retail energy suppliers might offer you the choice of either variable or fixed-rate plans. A fixed-rate plan would allow you to lock in a single supply rate for energy for the term of your contract.

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Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy, Inc., Constellation NewEnergy-Gas Division, LLC, Constellation Connect, LLC or Constellation Home Products & Services, LLC (d/b/a Constellation Home in Maryland and Pennsylvania and d/b/a Constellation in Georgia and Texas), each affiliates of each other. The prices of Constellation are not regulated by any state Public Utility Commission. You do not have to buy Constellation electricity, natural gas or any other products to receive the same quality regulated service from your local utility. Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omissions excepted.

Electricity or Gas Supplier License/Order #s: CA 1359, CTA0006, CTA0032; CT 01-06, 06-07-11, 07-03-08; DE 00-162; DC GA2012-12, GA06-2, EA01-5; GA GM-33; IL 02-0489, 03-0320, 16-0205, 11-0394; IA G-0010; ME 2000-989; MD IR-6345, IR-655, IR-311, IR-500, IR-3644, IR-228; MA GS-053, GS-030, CS-015, CS-045; MI U-14066, U-14867, U-13660; NE NG-0043; NH DM 17-024; NJ GSL-0074, GSL-0101, ESL-0016, ESL-0066; OH 02-021G, 09-153G, 00-003E; OR ES4 (12-162); PA A-2016-2542899, A-125095, A-110036, A-2016-2547424; RI 2379(Z1), D-96-6(E); TX 10014; VA G-26, G-34, G-36, G-51, E-11A

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* The $75 gift card amount applies to new customers that successfully enroll in a Constellation electric and natural gas bundle only ($50 gift card for a successful electric enrollment and a $25 gift card for a successful natural gas enrollment)

Only new customer successful enrollments with Constellation qualify. Cards are issued by Virtual Rewards Center. Valid email address required for receipt of gift card. Gift cards will not have cash access. For any questions about your gift card, call our customer care team at 1-888-897-6804.

Illinois Residents (Renewable Product Offerings): For Illinois renewable product offers, at the time of offering on this website, Constellation has not committed to a particular location or locations for the Renewable Energy Certificates used to fulfill its REC obligations under the terms of the product offer. Subject to change, Constellation does not anticipate pairing any of a customer’s energy usage with RECs from renewable energy resources located within the State of Illinois.