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Is Energy Deregulation Actually Beneficial?

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Energy deregulation has become a favorite topic over the past several years. Although the program is only implemented in some states, there are many other states considering switching to the deregulated system. Deregulation was developed to give consumers a choice when selecting an energy provider. There are plenty of arguments made for and against deregulation; here we will discuss help you weigh the pros and cons for yourself.

What is Deregulation?

California was the first state to incorporate the deregulation policy back in 1996-way before energy conservation was on the radar of most states. The concept came into existence based on the fact that the state governments have maintained a natural monopoly over the energy industry for decades. Deregulation was enacted to give consumers the opportunity to choose from other energy providers.

Retail Energy Providers (REPs)

The providers that offer competitive energy services are referred to as Retail Energy Providers (REPs). These companies are able to provide competitive prices and programs that energy customers can choose from. These providers essentially get their energy from the same source, but they use pricing plans tailor-made to fit specific demographics. If you need help understanding your energy needs, an energy consulting expert can help.

Choosing a Provider

When trying to decide on the right REP, you will need to consider a variety of factors. Among these factors are:


The following factors are seen as beneficial to the customer:


The following factors are seen as unfavorable factors regarding deregulation:


Energy deregulation was designed to give options to consumers. However, it is essential for consumers to become educated about plans and pricing. While deregulation has its issues, ending the monopoly that utility companies had over energy costs was a noble effort. The bottom line is that there are mixed views about deregulation. Hopefully, you have greater clarification.

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