When you open your electricity bill, you’ll likely see two names: your utility company and your energy provider. While the two work together to deliver power to your home or business, they don’t play the same role. Utilities maintain the wires and poles that keep the grid running, while providers compete to sell you electricity at different rates and plans.
Residential electricity prices have been steadily rising. In June 2025, the national average reached around 17.5¢ per kWh, marking a nearly 10% increase since January. To help you take back control of your bill, let’s look at your electricity supplier vs. utility so that you can try to cut costs and choose more environmentally-friendly energy options.
Utility Company vs. Energy Provider
So what is an energy provider? While utilities and providers both appear on your bill, they handle very different parts of the energy process. Utilities deliver power safely to your home or business, while providers give you the choice of how to purchase that power. Understanding these roles helps you see what changes (and what stays the same) when you switch energy providers.
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Pricing & Billing
Your electricity bill is split into two parts: delivery charges from your utility and supply charges from your provider. Here’s how the difference between a utility company and energy provider break down.
| Bill Section | Set by Utility Company | Set by Energy Company |
| Delivery Charges | ✅ Yes — covers poles, wires, meters, and grid maintenance | ❌ No |
| Supply Charges | ❌ No | ✅ Yes — cost of the electricity you use |
| Outage Response | ✅ Yes — utility crews restore power | ❌ No |
| Plan Tyle / Rate Options | ❌ No — fixed by regulation | ✅ Yes — fixed-rate or variable-rate plans |
| Customer Service | ✅ Yes — for outages and delivery issues | ✅ Yes — for billing, plan details, and account questions |
When you switch to Just Energy, only the supply portion of your bill changes — your local utility still delivers the power and maintains the grid.
Service Responsibilities & Outages
No matter who your provider is, your utility company always handles power outages and grid emergencies. A clear example was the Texas Winter Storm of 2021, when widespread blackouts occurred across the state. Providers could not restore power — only utilities managed repairs and brought the grid back online.
The event showed that no matter which provider you buy electricity from, utilities are still essential for keeping the power system running.
Contract Flexibility & Plan Options
Unlike utilities, energy providers compete for your business. That means you can pick from fixed-rate, or variable-rate plans. There may also be options for a renewable energy offsetExperts often suggest fixed-rate plans for families or businesses that want steady, predictable bills each month.
“Locking in a price in advance for a fixed quantity dampens the customer’s bill volatility.”
— Severin Borenstein, Energy Institute at Haas
Learn more about the difference between fixed and variable rate plans.
Understanding the Energy Market
The energy market may seem confusing, but it all comes down to two key players: utilities and energy providers.
In the 1990s and 2000s, some U.S. states and Canadian provinces changed their rules so more companies could sell electricity. This gave people more choice and control over what they pay. Deregulated markets separate energy delivery (the utility’s job) from supply (the provider’s job).
For example, in Texas, people can pick from many different electricity providers. However their local utility is still in charge of the power lines and fixing outages. In places like Florida, everything is regulated, so customers don’t get to choose their provider.
In Canada, people in Alberta can choose from many companies to buy electricity. In Ontario, the utility delivers the power, but customers can still pick who supplies it.
Role of the Utility Company
Utility companies own and operate the poles, wires, and meters that deliver electricity to homes and businesses. They also handle outages and maintenance, no matter which provider you choose. For example, if a storm knocks out power, your local utility is responsible for restoring service. You can’t pick their utility provider—it’s assigned by region.
Deregulated Markets
In many areas of the U.S. and Canada, energy deregulation lets people shop for different electricity providers instead of only buying from their local utility. That means you can compare:
- Rates
- Lock in fixed-price protection
- Renewable energy plans.
Your utility still delivers the power to your home, but you decide who sells you the electricity and manages your account.
Pros and Cons of Choosing an Energy Provider
Switching energy providers can open the door to lower rates, flexible plans, and renewable options. But like any contract, there are trade-offs to consider. Understanding both the advantages and the potential drawbacks helps you make a confident choice.
Potential Cost Savings
Energy providers compete on price, which can translate into supply rates that are lower than your utility’s default option. Fixed-rate plans also help you avoid seasonal spikes and market volatility. To maximize your energy savings, consider:
- Locking in a fixed rate to stabilize your monthly bill.
- Comparing providers annually to ensure you’re still getting the best deal.
- Bundling gas and electricity when possible to cut costs.
- Using smart tools like programmable thermostats and energy-tracking apps to reduce consumption.
Renewable Energy Plans
Renewable plans go beyond simply buying electricity. They allow households and businesses to support cleaner energy sources. Many providers offer add-ons that support clean energy, like credits for wind and solar or carbon offsets for natural gas. These options can make your energy plan more closely match your values.
Customer Service Experience
Many providers deliver perks utilities don’t, such as loyalty rewards, mobile apps, and online account tools. That said, you’ll want to review contract details in your Electricity Facts Label carefully. Some plans include early exit fees or special conditions that can catch you off guard. And terms can vary significantly by provider, so it pays to read the fine print.
Learn more about Just Energy’s benefits programs.
Why Choose Just Energy As Your Retail Energy Provider
Choosing an energy provider is about more than rates — it’s about peace of mind. Just Energy plans offer stability, flexibility, and renewable options, making it easier to manage energy costs for your home or business. Here’s what sets Just Energy apart.
Fixed-Rate Plans & Predictable Bills
Energy prices can swing with the market, but your bill doesn’t have to. With a fixed-rate plan from Just Energy, you lock in your supply price for the length of your contract. That means no surprises during peak usage months and a budget you can actually count on.
Green Energy Options
Going green doesn’t require solar panels or major home upgrades. Just Energy lets you add renewable energy credits or carbon offsets directly to your plan. It’s a simple way to reduce your household’s footprint while still enjoying reliable service from your local utility.
Award-Winning Support
Energy is essential, and so is dependable service. Just Energy customers have access to 24/7 support, easy online account management, and flexible billing options. Whether you need to review usage, update your plan, or get answers fast, help is only a click or call away.
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What to Expect After You Sign Up with Just Energy
Switching providers may sound complicated, but the process is seamless. Here’s how it works:
- Choose your plan online or by phone
- Sign your agreement and confirm your utility details
- Just Energy handles the switch behind the scenes
- No interruptions — your power stays on throughout
- First bill arrives with Just Energy listed as your supplier
When you choose your plan, online tools make it easy to compare options side by side. After you sign your agreement, Just Energy works directly with your utility to handle the transition — you don’t have to fill out extra paperwork.
When your first bill arrives, the format looks nearly identical, except you’ll now see Just Energy listed as your supplier.
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Utility Company vs. Energy Provider FAQs
Will my utility change if I pick Just Energy?
No. Your local utility still delivers power and fixes outages. Just Energy only supplies the energy and sets your supply rate — nothing changes with delivery or reliability.
Does switching energy companies cost money?
Enrollment with Just Energy is free. Some plans charge a fee if you cancel before the contract is up, but those costs are clearly explained before you sign.
Switch to Just Energy
Utilities take care of the poles, wires, and meters that deliver electricity, while providers compete to sell you the power. Knowing the difference can help you find lower rates, choose renewable options, and keep your budget on track.
With Just Energy, switching is seamless — and the right plan can deliver both stability and long-term value.
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I heard about Just Energy through a friend of mine. I went with them because of their low rate, and I save more energy too. With their service, our bills went down. Their people were nice as well.
Franklin Powe
The post Utility Company vs. Energy Provider: How Are They Different? appeared first on Just Energy.
