What is an ESCO?

Your energy bill consists of two parts – supply and delivery. When the government deregulated the natural gas industry in 1966 to make prices more competitive, consumers were given the right to choose whether they wanted their gas supplied by the same utility that delivered it, or by an independent Energy Service Company (ESCO). Because an ESCO does not have the financial overhead associated with a utility (i.e., merchant function charges such as costs associated with procuring and storing natural gas, credit and collection related activities and uncollectable accounts) an ESCO can supply gas with less expense. Switching your gas supply to a ESCO can reduce your gas cost, sales taxes on delivery, merchant function charges and utility and state surcharges even as the delivery portion of your energy service continues to be provided by your utility company.