In a regulated energy market, public utilities are responsible for all the power, services, and infrastructure in your area. However, in a deregulated market, many of these tasks are performed by private entities known as Energy Service Companies (ESCO). For consumers, “What is an energy service company” is an important question. Understanding what ESCOs do and the advantages they provide will help you find an energy solution that fits your short-term and long-term needs.

What is an ESCO?

An ESCO is a business that provides a broad range of energy and infrastructure services to communities and households. Their goal is to provide customers with a choice and provide options that may not be available through their local utility. ESCOs play a critical role in the modern energy market. Some of their most important work includes:

  • Electricity and Natural Gas Supply. Rather than rely on public utilities, consumers can sign a contract with an ESCO for gas and electricity.
  • Operations and Maintenance. Partnering with an ESCO that offers value added services can help homeowners and small business owners restore malfunctioning systems.

While some ESCOs offer their clients comprehensive support, most specialize. Pricing varies, but their independent approach allows them to deliver solutions outside the scope of ordinary utilities.

What Are the Benefits of Working with an ESCO?

On a local level, ESCOs offer energy plans to households and small businesses. In order to compete on the open market, some attract customers with additional services. Partnering with an ESCO may even provide access to skilled technicians when HVAC equipment breaks down, in order to protect your energy related equipment while keeping long-term costs under control.

Are ESCOs Regulated?

Even though ESCOs operate independently, their activities are overseen by government organizations, such as Public Utilities Commissions and Public Service Commissions. These groups monitor their activities for the protection of consumers, reviewing contract terms, billing practices, and termination policies to ensure customers are treated fairly. ESCOs operating in certain sectors of the market are also required to acquire permits and licenses from state and federal agencies.

Save on Energy Related Repairs with Agway®

Agway® is an Energy Service Company that powers homes and small businesses throughout New York and Pennsylvania. Every customer who joins is automatically enrolled in our EnergyGuard program, which protects your heating, cooling, and electrical systems* from damage caused by wear and tear. Homeowner’s insurance and property insurance doesn’t cover these types of issues, but we do, ensuring your furnace, air conditioner, and internal wiring have the support they need to continue functioning.

When the need for repair occurs, our customers don’t have to waste time searching for a qualified technician. They contact us instead. Our service team maintains a network of certified contractors and electricians and sends the first available one straight to your door. There are no service fees or deductibles either. We pay for the visit and all covered parts. Protect your peace of mind. Sign up and start enjoying the benefits of EnergyGuard today!

*Systems covered depend on commodity purchased.