As the concept of energy deregulation continues to be implemented in various countries around the world and even in the United States where several states have already established implementation, the impact is set to completely transform the Energy Market today and eventually in the near future. However, many continue to oppose this system, fearing that deregulation would result in instability and unreliable services from the electric companies.
These entities should understand that the energy provided by the deregulated Texas electric companies and other states is the same safe and reliable electricity that has powered their homes for several years that is continued to be regulated by the Public Utilities Commission. What has changed is that the electrical services they received will be brought to them by local electric companies instead of far-off power plants that have controlled the distribution of electricity for as long as people can remember.
The following describes the three biggest impacts that energy deregulation has brought upon to completely transform the energy market.
Energy Deregulation and the Liberalization of the Energy Markets
For almost a century, governments and even the people have always been led to believe that electricity is a natural monopoly, particularly by the big power plants that generate electricity, and would never be distributed by local suppliers. According to the book “Power to the People” by Vijay V. Vaitheeswaran, the governments of the world have controlled and monopolized the energy industry akin to the line of what the old Soviet Union – which was led to believed by Lenin that Communism is basically a combination of Soviet power and providing electricity to the whole nation.
With energy deregulation, local electric companies called Retail Electric Providers (for Texas electricity) or Energy Service Companies (as they call them in New York) can now compete with large electric monopolies in providing electrical services to residents. Energy deregulation has completely liberalized the energy markets, setting consumers free from the mercy of energy monopolies.
Energy Deregulation and Consumer Decisions
The liberalization of the energy market and the proliferation of Retail Electric Providers have given the consumers the power to select the best electric companies that would supply their needs according to the price range and payment schemes that is suitable for them as well as the quality of service they receive from these companies. No longer will be decisions be based or dictated by the whims of energy monopolies, but by the supply and demand trends dictated by the needs and wants of the consumers.
Aside from that, the new liberalized market has given rise to additional earning opportunities for the masses, as Texas electric companies as well as other companies from various states offer affiliate or consultancy programs for residents wanting to earn money among the various ways presented in these programs.
Energy Deregulation and Saving the Planet
The previous energy market has been plagued with several issues and problem such as over-reliance on oil, environment issues from fossil-fuel pollutants, and global warming. With energy deregulation, electric companies can shift to alternative energy forms which can harness renewable and environmentally friendly resources such the sun, wind and water. Technologies are being developed that could produce smaller and cleaner power plants using hydrogen fuel cells which can be established near communities and the consumers – potential sources of cheap electricity that will complete revolutionize the energy market once more.