Thursday, September 1, 2016
New Study Finds Customers Prefer Deregulated Energy Markets
According to EnergyManagerToday.com, the study, which was released on , found that consumers in deregulated energy environments are significantly more engaged, and ultimately more satisfied, with their energy suppliers. One of the recurring themes was that electricity and energy suppliers in deregulated market “had a far better reputation than those in regulated markets.”
In a study that surveyed over 1,000 U.S. utility ratepayers, about 68% of those in deregulated markets said they were satisfied with their providers, compared to just 51% in regulated markets.
Similarly, if predictability and consistency are important to you, then deregulation is right for you, too. Approximately 62% of consumers whose energy suppliers competed in a deregulated environment knew exactly how much their electricity cost last month. 54% of consumers in regulated markets could say the same.
Finally, if that isn't proof enough for you, one look at the reputation of these kinds of companies is really all you need to know. The majority of deregulated market consumers (62%) thought their supplier had a good reputation. Consumers in regulated markets were not so thrilled, as only 42% said the same about their energy suppliers.
It's easy for people to tune out, calls for competition and free market policies as industry propaganda, but when you look at the numbers, it's clear that the people actually experiencing this kind of choice are saying the exact same things.
The deregulation of electricity markets began in the 1970s and today, many states have accepted the idea, along with the deregulation of power companies too. The rising demand for these resources is one of the primary factors behind these recent trends. In fact, electricity use was more than 13 times greater in 2013 than in 1950. The industry has been forced to innovate as a result. According to the Edison Electric Institute, the cost of generating electrons currently accounts for less than half of the price of electricity, compared to accounting for two-thirds of that cost in 1995.