how do energy/electric companies allow people to switch providers in some areas?

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I’ve seen things with people in different regions talking about how you can switch to a different company for electricity or natural gas. How does this work? Do places where this is the case have lots of pipes and conduit running for each company, or is it somehow shared among them?

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Anonymous 0 Comments

Think of it like a community pool that everybody gets water from.

The pool is filled up, bucket by bucket from the river. So If I want to use 10 buckets of water a day, somebody needs to put 10 bucks in the pool on my behalf. So lets say I pay Company A to do it. I’m not going to physically take their water, as its all mixed in. But because they are providing water, if I pay them, I can take an equal amount out.

Its similar to that way with power. Its all a connected grid. If I buy power from Company A, that power is not actually being sent to my house on Companies A lines. Instead company A is placing power onto the grid, and I am free to take an equal amount from the grid.

Also, even though I buy power from Company A, my energy company still maintains the lines. So I pay my company a distribution charge, and I pay company A the generation charge.

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