Who Benefits From Energy Deregulation?
There are many benefits to energy deregulation in the United States. Prior to deregulated utilities, consumers and businesses were required to purchase electricity from their local utility companies at regulated rates. These utilities had a monopoly in the marketplace and there was not much flexibility in terms of price options and contract structure.
When states started to deregulate their utilities, this gave consumers a choice. In fact, if you live or own a business in a deregulated state, you can choose from many third-party retail energy providers. These providers offer electricity and natural gas rate plans and contract options to consumers. Some of the added benefits of deregulation include:
- Lower Prices: Due to competition among suppliers, the free market of energy deregulation can bring lower prices to consumers.
- Price Options: Unlike consumers in regulated states, those in deregulated states have many price options when it comes to electricity or gas supply. Some of these options also include renewable energy.
- Contract Terms: In a deregulated state, you can fix your electric price for an extended period of time. In fact, if you have a certain amount of usage, you can even lock in future prices when they are favorable. This helps businesses plan budgets well into the future.
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