For quite some time, there has been deregulation for http://www.electricitycompaniestexas.com/. In 1999, deregulations were passed, but it wasn’t until 2002 that these regulations went into effect. Many Texas have absolutely no idea how deregulation actually works.
However, most people don’t keep up with what is going on in the energy market. The average Texan receives their energy bill and pays it; that is why most Texans don’t know about deregulations.
What Is Energy Regulation?
When it was regulated, the government controlled the entire Texas energy market, and it had the final say in how electricity could be priced, distributed, transmitted and generated. At the time, there was a single company that handled all of the electricity needs in Texas.
Put simply, there was only one company that could, by law, sell, distribute, transmit and generate electrical power. The fact that only one company was involved created a monopoly. If there is anything to learn from the Monopoly board game, it’s that one person or company’s monopoly is not good news for other players.
The purpose of the deregulation legislation was to eliminate the current electric monopolies. Lawmakers hoped deregulation would cause many electric companies to sprout up and compete, and the end result would be cheaper electricity for Texans.
Although approximately 25 percent of the Texan electricity market is still regulated, the bulk of the market is deregulated.
How Energy Deregulation Benefits the Consumer
Many Texans want to know how they benefit from deregulation. One of the greatest benefits of deregulation is cheaper electricity. Since there are many providers competing for business, the price of energy drops, and Texan consumers are able to pay less money for electricity.
The deregulation of the energy market has also made it easier for Texans to find alternative energy companies. In Texas, it’s now much easier to find affordable green energy. Another benefit of deregulation is better customer service. In a regulated electricity market, consumers only have one provider. When a single provider knows that all consumers must come to them for electricity, they don’t have any incentives to provide quality customer service. However, a deregulated market opens the door for many providers, so each provider is fighting for business and will provide better customer support.
The deregulation of the Texas electricity market also brought with it many loyalty programs and promotions. To garner more business from consumers, electric companies in a deregulated market offer various incentives. Many companies offer gift cards to entice consumers. Many companies allow consumers to enroll in loyalty programs, which might pay cash back on future bills. Another benefit of deregulation is quick turnaround and zer4o interruption. Put simply, consumers can expect a seamless transition from one company to another. Overall, the deregulation in Texas was to help consumers, and even today, it’s still very beneficial to Texan consumers.