Energy Deregulation

About Energy Deregulation

The people willing to scriface some time and study the opportunities of the deregulated electricity supply markets can substantially save money on elecricity.

Legislatures and the public utility commissions of many states have opened retail competition for electricity supply. The measures allow consumers of electricity to choose their supplier of electricity, (generation), while the delivery of the power, (transmission and distribution), will still be the responsibility of the incumbent, (regulated), power company. Deregulation of the electricity supply market is in many ways very similar to the deregulation which occurred many years ago in the long-distance telephone service market.

Now the consumers have the power to pick an elecricity supplier which they like. The single and most important consideration in the deregulated market is that there are material differences among the electricity supply products offered by the competitive service providers and especially vs. the standard offering made by the incumbent utility from which you have purchased power historically. Some of these differences amount to matters of price, while other differences are much more complex, having to do with reliability of service, etc.

The purpose of energy deregulation

The purpose of deregulation is to foster competition among electricity suppliers with the medium and long-term goal of combating the high prices maintained by government-sanctioned regional monopolies over the past decade. There are signs that deregulation of the electricity supply market is working as desired. For example, over the past 24 months there have been more applications to commence construction of power plants across the United States than there have been over the course of the past ten years combined.

The more available power there is, the greater the competition will be to generate and sell power efficiently, leading to lower prices, as well as more consumer-friendly energy products. On the retail level, we have been seeing the positive effects of deregulation manifest in real competition for our customers' electricity needs. This is a winning situation in most markets. Let us help you get the best deal you can for power supply in your marketplace.

Who can benefit from energy deregulation?

All consumers of power in deregulated markets, including you, can benefit from energy deregulation from the natural gas and elecctricity supply markets. Beyond this generalization, the details of the process involved in actually realizing sunbstansial savings can be very complex. This is because the system and policies dealing with dereregulation sometimes lag behind legislative action to deregulate. In other words, laws are ratified, but time is neccesary for people to figure out the details and how to handle correctly within the newly-created boundaries of law and practice. Also, deregulation does relate in some way to regulated utilities. This means that municipal utilities, electric cooperatives, and similar government-owned utilities are often omitted or do not have the jurisdiction to participate in a deregulated marketplace. This makes for a very complex situation in some states when some customers separated by a few blocks can have vastly different prices for power and opportunities for savings