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Top 6 Benefits of Energy Deregulation

May 24, 2010

Despite all the negative publicity and media issues posted against energy deregulation, several states continue to push through with its implementation, each formulating their own system on how to effectively implement the system within their boundaries. The state of Texas is at the forefront of this implementation, with several Retail Electric Providers and other new players in the Texas electric industry stepping forward to participate in the energy deregulation roll out.

The following are the top six benefits that can be derived with the implementation of energy deregulation, not only for consumers but for the community and the environment as well.

  1. Consumers are Given the Power to Choose – Probably the most important benefit that consumers derive from energy deregulation is the privilege and opportunity to select the Retail Electric Providers that will bring Texas electricity to their homes or business establishments. Whether their motivation for switching providers is to get cheap electricity, better customer service or the option to choose alternative energy resources, consumers are now not restricted by what the utility monopolies of old dictate.
  2. Eradication of Energy Monopolies – in an industry that has been characterized by monopolies and cartels, the playing field is now leveled with the influx of new industry players all competing to provide electrical services and products to the consumers. With a new atmosphere of competition, the consumers now dictate the quality of services that they deserve from the electric companies.
  3. Better Quality of Services from Providers – the new competitive atmosphere have placed electric companies in a pro-active mode in a dash to provide better services to consumers. Providing reliable services ensure customer loyalty, otherwise they risk being replaced as the Retail Electric Provider of choice. This liberalization in the electricity markets not only resulted in better quality services for consumers, but higher standards in safety, reliability and overall customer satisfaction.
  4. Increased Competition Results to Better Pricing Schemes – Residential and industrial consumers benefit from more competitive pricing schemes put forward by Retail Electric Providers in a bid to secure customer loyalty to their services. These providers compete by providing better payment schemes, incentives and promos to gain consistent customer patronage. On top of this, energy deregulation normalizes the pricing differences from state to state, which is seen as unjustifiable during pre-deregulation periods.
  5. More Jobs and More Entrepreneurs – the Energy Deregulation program have seen the emergence of new players in the electricity services industry, and this can be translated to more jobs in technical, sales, marketing and administrative areas in the industry. Aside from that, people with an entrepreneurial spirit can jump right in and cash in from this great business opportunity as an affiliate marketer or, if they have enough capitalization, as a retail provider.
  6.  A Benefit to Mother Earth – the establishment of energy deregulation have paved the way for the emergence of alternative and renewable energy resources that produce less pollution and is safe for the environment. Consumers now have the option to make a difference to the environment by making a stand and choosing providers that support renewable resources – as a benefit for them now, as well as for future generations.
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