To be licensed, a competitive service provider (CSP) must demonstrate to the State Corporation Commission that it has the technical and financial capability of providing service to Virginia consumers, and demonstrate that it has access to electricity supply. An aggregator works like a buying club by pooling together larger numbers of customers and then purchasing energy from a CSP on behalf of the whole group. A license may cover the whole state or only the specific service territory of a local distribution company (LDC).

There are two steps a CSP or aggregator must take in order to make competitive offers.

1. Obtain a license* from the SCC.
2. Register with the LDC that serves area where competitive offers may be available. Registration ensures that the process of switching suppliers goes smoothly.

Only those CSPs and aggregators who have completed both steps are ready to make offers. Each CSP and aggregator decides to which consumers it will market and when to begin such marketing.