California To Lead The Nation In Deregulation
Nov 21, 2009 Business Management
Energy customer from all over the U.S. can exercise their freedom of choice in regard to the energy provider. It has taken several years in the making but it is finally here. The old way of doing things had the government negotiate on behalf of all of the people, a standard and consistent energy rate, but now Californians can seek out the lowest price for themselves.
The idea that bureaucrats could negotiate a better deal than the average consumer, and that the utility companies were going to grant a fair price just because the government said so, is ludicrous.
There were many good effects of regulation. It consolidated a previously scattered and disorganized industry and made the suppliers accept a price, but was that price a good deal for the consumers? Not when you view it through the lens of the amount of consumers who were rolled into the contracts.
Considering that these energy corporations may never have retained as many clients as the government was going to assign to them, they made out like bandits. If there were ten different providers common sense says that a certain percentage would have chosen each one for various reasons, if the prices were around the same point.
When the government allows high dollar energy corporations to determine what is an acceptable price for the consumer, the only winner is the utility company. With regulation out of the way, energy providers are forced to start wheeling and dealing to find new energy sources and actually deal with customers in the free market way of reducing their prices to be competitive.
With the customers holding all the cards, the energy market will benefit and innovation will bring greater developments to the industry. As innovation returns to the energy market we will see a rapid growth of modern technologies applied in new and inventive ways.
The author enjoys writing articles on retail energy provider & energy providers in Houston. Click on the links above to learn more!
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