5 Reasons Deregulated Energy Markets are Best

The idea and actual practice of deregulated energy markets as alternative energy sources to traditional power suppliers "on the grid" is still relatively new in this country. 

Some would argue the restructuring began in the 1970s when the Public Utilities Regulatory Policies Act (PURPA) was passed and created a structure for independent power suppliers. However, it wasn't until 1992 when deregulated energy markets really became an institution with the passage of the Energy Policy Act. That legislation got rid of regulations on the price control of wholesale electricity. 

According to the Edison Electric Institute, the cost of generating electrons currently accounts for less than half of the price of electricity, a number that was two-thirds in 1995. Deregulated electricity has played a vital role in that. There are other reasons deregulated energy markets are best for consumers of course, and here are a few of them.

Better Customer Service: When businesses compete in the free market, a beautiful thing happens naturally: the quality of their services goes up. At least for the successful companies that is.

Possibility of Promotions and Loyalty Programs: Competing companies are constantly trying to come up with promotions and loyalty programs to attract or retain your business. Energy companies sometimes do the same thing, except when there is only one option to choose from. In deregulated energy markets, you can even switch from supplier to supplier depending on who has the best deals going on.

Renewable Energy Options: More and more people are going green. Deregulated energy markets give you the power to choose the company that offers the most sustainable option.

Easy and Efficient: Some people resist the idea of deregulation simply because they don't like change and believe switching to a new company would be a long, drawn out process. The fact of the matter is, the change over process is quick and easy. Often times you can keep the one bill from your electricity company and won't even experience any interruption in your service.

Overall Cost: Of course, the biggest and best advantage deregulation has is the lower costs that can be gained by some consumers. When businesses are allowed to compete, good things tend to happen for the buyer.