The debate over electric deregulation has been continuing for over 20 years and has affected many of our nation’s electricity producers and buyers. With the enforcement of deregulation, consumers will be able to “shop around” for electricity and pursue a product that is appropriate for them and their electrical needs. The creation of new energy technology has thrown the electricity industry for a loop and has provided a place for a new market to begin to grow.
Public utility companies brought with it the problem of electricity’s distribution methods and it’s cost. Because of its monopoly status, electricity companies were free to charge whatever they wanted for their commodity. Other commodities like telephone service and the banking industry have been forced to compete since their creation. Since electricity providers haven’t had to, their consumers were stuck paying whatever the electricity companies demanded, even if they couldn’t afford it. Without regulations to keep the electricity monopoly in check, its natural economics were skewed and it became dominant in its field. Because of deregulation, Americans are now able to shop around for electric companies that fir their specific needs. Without the blanket price that previous electrical providers have charged, more individualized service plans have become available for America.
When it first came into being, the regulated electricity industry was a complete and all-encompassing monopoly. Only the boundaries installed by the Federal Energy Regulatory Commission, electricity providers were free to charge whatever they wanted in their section of land. This problem brought around the debate over deregulation. However, when it was first implicated, it was unsuccessful. People remained with their current power companies, not wanting to switch to a brand new company that had no dependability. The new companies didn’t stand a chance against the giant monopolies, and consumers were hesitant to spend their money on them. The monopolies were seemingly unaffected, they retained their former customer base and they were not about to hand over to the new electricity companies. However, this quickly began to change.
Deregulation has allowed people to shop around and discover for themselves their best electricity value. The new market for more environmentally friendly, “greener” energy sources has forced the electricity companies to adapt. People are installing solar panels and other renewable electricity generators, effectively changing their lifestyle and their electrical needs. The promise of a lower energy bill and tax exemptions offered by the government are encouraging people to take their electricity matters into their own hands, the former electrical monopolies are facing new competition, creating a supply and demand atmosphere that the previously dominated market lacked.