What is Energy Deregulation?
Today, energy users have the power to choose where their energy comes from, but that wasn’t always the case. Energy deregulation is the restructuring of the existing energy market, and seeks to prevent energy monopolies by increasing competition.
This growing movement allows energy users to choose from multiple energy providers based on rates that suit their needs and specialized product offerings.
A brief history of energy deregulation
What is energy deregulation? To truly understand the potential of a deregulated energy market, you need to understand the history of energy in the U.S.
The benefits of energy deregulation
The deregulation of the energy industry brought multiple benefits to the energy user, and includes the following:
- Power to choose. Deregulation allows energy users to choose where their energy comes from, and allows them to choose plans that are best for them.
- Increased competition and better service. Deregulation promotes competition among energy firms, and motivates providers to offer excellent service to their customers.
- Encouraged energy efficiency. Deregulation empowers users to be more energy efficient by choosing companies with more energy-efficient practices.
- Improved energy consciousness. Energy deregulation helps energy users understand energy costs by evaluating different plans, and providers often help their customers to save and conserve energy.
- New and enhanced services. By diversifying, competitive energy suppliers often offer additional services and benefits to their energy users that would otherwise have been unavailable.
Deregulated energy states
The majority of U.S. states continue to regulate energy, but many states are opening up to deregulation. At present, states and districts with the power to choose include the following:
All in all, energy deregulation is a positive movement that boosts the power of energy users and improves customer service. Now that you understand the history of energy deregulation, you can read more about the importance of energy choice and why it matters for you and your home or business.