What is Deregulation?
Deregulation is the process by which governments remove, reduce, or simplify restrictions with the intent of encouraging efficiency and competition in markets. Deregulation in the United States traces its roots to the oil crisis of the 1970s but it took until the 1990s to truly put the idea of electricity and natural gas deregulation into practice. Today, about half of the states have enacted some form of energy deregulation.
Pennsylvania deregulation – consumers now have a choice
In 1996, Pennsylvania deregulated its wholesale electricity market and utilities were no longer allowed to have a monopoly over all three components of the energy industry – they must allow electric suppliers such as Energy Plus® to compete for customers. Since then, consumers have had the right to choose their electric supplier. Already over 550,000 consumers throughout the state have chosen a new electric supplier.
Until recently, utilities controlled all three components of the energy industry – the energy production, the infrastructure required for delivery and the retail sale of energy. Unfortunately, the absence of competition stifled innovation and created monopolies that had little incentive to provide their customers with more choices and value for their energy needs.
Is deregulation a good thing?
Yes, without deregulation, innovative services, like earning Cash Back, would not be available. Now you can exercise your power to choose.
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