California To Guide The Nation In Deregulation

Energy customer from all over the U.S. can exercise their freedom of choice in regard to the energy provider. After many years of legislative changes the free market has finally prevailed. This loosening up of the conventional way energy prices were negotiated will allow many Californians to shop for the best rates for their energy.

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. With energy wholesalers accepting a baseline price, the energy prices were stable which allowed many people to budget accordingly, but this price was not necessarily the best price. If handing a large corporation millions of customers can ever be a good thing, then regulation was a good thing, but it so rarely is.

Regulation essentially granted the energy conglomerations huge amounts of customers they otherwise would never have gotten due to market limitations. Given that a broad assortment of providers is always in the best interest of customers, regulations sold them short.

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. Price reductions are the main component of the free market system and if that is short circuited then it all goes haywire.

With the customers holding all the cards, the energy market will benefit and innovation will bring greater developments to the industry. Without the vital energy innovation brings to the energy industry, there would be no reason to bring about the desperately needed changes in our energy grid.

The author enjoys writing articles on retail energy provider & commercial utility company. Click on the links above to learn more!