Deregulation of the utilities industry brings about competitive energy - PowerPoint PPT Presentation

About This Presentation
Title:

Deregulation of the utilities industry brings about competitive energy

Description:

Deregulation of the utilities industry brings about competitive energy options that represent a long overdue change in the way the utilities industry operates. Before deregulation (and currently, for regions still under regulated control), single large monopolistic utility companies had complete control over the sale and distribution of one or more commodities (such as electricity, natural gas and water) in their region. – PowerPoint PPT presentation

Number of Views:556
Slides: 4
Provided by: dhussl
Category: Other

less

Transcript and Presenter's Notes

Title: Deregulation of the utilities industry brings about competitive energy


1
What Is Competitive Energy
2
  • Deregulation of the utilities industry brings
    about competitive energy options that represent a
    long overdue change in the way the utilities
    industry operates. Before deregulation (and
    currently, for regions still under regulated
    control), single large monopolistic utility
    companies had complete control over the sale and
    distribution of one or more commodities (such as
    electricity, natural gas and water) in their
    region. Thankfully, for a growing list of over
    twenty states that have adopted deregulation in
    favor of competitive energy, this is no longer
    the case.
  • Deregulation has opened the door to competitive
    energy by allowing smaller local utility
    providers and commodities brokers to step in and
    take over the billing aspect of the business by
    selling utility services directly to the people
    and organizations that use them. This is as
    opposed to the traditional method of relying on
    regional distributors to purchase and resell
    these types of services in accordance with state
    and local regulations. Such regulations were
    designed to keep prices in check, but due to the
    sheer size and wealth of regional utility
    providers, they had much more control over
    commodity prices than they should have.
  • Under deregulation, regional distributors still
    control and maintain the infrastructure and the
    delivery systems in order to ensure that the
    quality, safety, and reliability of provided
    services remains the same for all effected
    consumers. The only thing that deregulation
    changes for consumers in deregulated regions, is
    that they now have the power to choose which
    provider within a competitive energy market best
    suits their needs in terms of cost, service
    availability, and a number of other factors that
    they previously had no ability to control.

3
  • One of these factors is that under deregulation,
    environmentally conscious consumers now have the
    ability to go green or reduce their carbon
    footprint by choosing a supplier that offers a
    plan with a higher renewable content or even one
    where only (100) renewable sources are used.
    Prior to deregulation and the ensuing competitive
    energy market, the only way to take advantage of
    renewable technologies was for the consumer to
    install and maintain the production equipment on
    their own property, using their own money. For
    most, this is simply not a feasible option as
    they do not have the time, or the money to invest
    in such undertakings. Thus, deregulation has
    quite literally opened the door for progression
    in the renewables sector.
  • Progression in the renewables sector also equates
    to advancements in the traditional energy sector
    as increasing use of renewable sources leads to
    innovation as a means to come up with cleaner and
    greener methods of producing commodities and
    reducing or capturing the greenhouse gas
    emissions associated with traditional production
    methods.
  • What this all boils down to is that deregulation
    of the utilities industry is a very good thing
    that provides very good results. Not only are
    these results quantifiable by the relatively
    small businesses and brokers that benefit from
    the direct sale of utility services, they also
    equate to savings and more options for consumers,
    and innovation in technologies that make energy
    cleaner and more affordable for all.
Write a Comment
User Comments (0)
About PowerShow.com