History of Energy Deregulation

The regulation of energy refers to laws at the state or federal level which specify that utility companies in specific areas are permitted to supply energy, including gas and electricity, to consumers in that area. The energy suppliers are also required to meet certain reliability standards and can only charge certain prices. Today, Texas residents have the power to choose the utility company that they want to purchase their energy from due to deregulation. Deregulation refers to the right given according to state law to purchase Texas energy from their choice of a number of utility companies instead of being limited to the local one.

Electric energy became available before the turn of the 20th century, right after the widespread use of natural gas. Early on, residents and businesses had to pay the high energy prices that the utility companies charged, in spite of poor service. The government regulated the energy companies to protect consumers and ensure they got the reliable service they needed at a reasonable price. Each state’s government responded by appointing a body that worked with utility companies to determine which company would provide the energy to each area of that state.

Unfortunately, this process led to a monopoly of the energy services where there was no competition to drive down gas and electric rates. The idea was introduced that competition could be allowed in supplying energy while the utility companies would continue to deliver the energy. This method would prevent local utility companies from having monopolies, government supervision would remain in place to protect consumers, and people would have the power to choose which supplier would provide them with their needed energy.

All states did not become deregulated at one time and some of them still are not today. States like Texas that have electricity deregulation have given home owners the power to compare rates between different Texas electricity providers and make the best choice. Today, the government is making it mandatory for power suppliers to become capable of providing electricity to customers in those areas where they were previously unable to supply it. This has brought more competition to energy companies striving to maintain their customer base. For the customer, it is the opportunity to choose an energy supplier that fits their lifestyle.

Deregulation of energy is beneficial to consumers because it gives them a better variety of suppliers to choose from and make comparisons of rates between each. Power regulation varies from one state to the next but the one detail that consumers in every state have in common is the advantage that comes from being able to compare electric rates. Consumers can also get the advantage of using an independent comparison tool like Shop My Power to help them compare electricity rates in Texas and other deregulated states so that they can make the best choice for their lifestyle and for their budget. This is a free service that will provide the consumer with the lowest published rate for each provider. For more information, visit our website at www.shopmypower.com.

Summary: Energy regulation is something that began in the late 1800s, leading to monopolies when consumers were limited to purchasing energy from a designated local energy company.

Deregulation gives consumers the power to choose their energy supplier while maintaining the supervision of the government that ensures availability and price guidelines are met. Shop My Power is an independent comparison tool that will always provide you with the lowest energy rates available to you.

Bio: Shop My Power is an independent, non-biased comparison tool that is designed to help energy consumers purchase their electricity or gas company within the states that have deregulation. The people behind the company have more than 20 years of experience in the energy industry. Shop My Power is a free referral service that will always provide you with the lowest possible price on power. They are paid by the energy companies for making referrals so that you get the benefits of the best energy rates without the search or the cost.