ESCO stands for Energy Service Company. ESCOs developed as a result of legislation in New York which deregulated the energy industry, allowing consumers to choose their preferred energy provider. In the past this choice did not exist. The government tightly controlled the energy market and consumers had to rely only on the government’s choice of energy provider. Deregulation broke up the energy monopolies and allowed competition into the energy marketplace.
There are many ESCOs today to choose from in New York, depending where in the state you live. Companies such as HIKO Energy, MXenergy and the Energy Cooperative of New York, Inc., all purchase the electricity which consumers use and supply the service consumers expect, keeping prices down and service up.
Since there is now competition for customers, pricing is now competitive and there is more of an incentive for the various companies to develop new technologies in order to better serve their customer base. Yet delivery of energy is still the responsibility of the utility, and they will maintain responsibility for controlling the delivery system that is already in place.
Working in conjunction with the ESCOs such as MXenergy, the Energy Cooperative of New York and HIKO Energy, consumers can rest assured that not only are they getting the power they need, but it is being supplied in the most cost efficient and effective means possible.
How exactly to companies like HIKO Energy, MX Energy and the Energy Cooperative of New York compete? Here are some of the ways:
- Many of the ESCOs, including HIKO Energy, do not charge an enrollment or switching over fee.
- The Energy Cooperative of New York, as a not-for-profit, member owned cooperative can sometime offer discounts to commercial and residential customers, as often other ESCOs do as well.
- Certain ESCOs put more of their focus on customer service and relations, for instance MXenergy, which supplies power to 15 different deregulated areas throughout the US and two more in Canada
Deregulation of the energy companies has brought the freedom to choose to the people. When consumers research the different services and prices which the ESCOs supply, they can then make an educated decision about which ESCO is best for them.