What is electricity deregulation?

deregulation, in general, was a hot topic of discussion during the regional and local levels during the election periods. They are deregulated when the government releases or removes regulations in the sector to take over the free market and allow the equilibrium price of supply and demand to set the market price. Although deregulation was generally considered to be successful both in the aviation and banking industries, the deregulation of electricity did not work in the same way.

Supporters of electricity deregulation hope to break unnatural monopolies that have electric companies. They say that with multiple energy production companies, the wholesale rate of purchasing power would decrease. At the same time, to give customers a larger selection in which an electric company would use for services, created a healthy competition among service providers, thereby reducing the total consumers' prices. In the middle of a cold winter, people still have to warm up houses, just as they have to cool down in the hot summer months. Demand basically remains in considerable levelY fixed even if the offer varies. Without a responsive market, they say that electricity deregulation does not work as it should.

Since 2004, Belgium and England have been the only two countries that successfully deregulate the electricity industry. The rest of Europe is maintained by a hybrid of public and private companies in which governments deal with the regulation of power for customers, while the private sector generates energy. In Asia, Hong Kong has a proposal for electricity deregulation by 2019, with a 50% deregulatory goal by 2014. The plan hopes to get rid of the area of ​​electricity monopoly, but can give up if there are too few private companies. Integration into the Chinese electrical structure can also use interruption of complications and services.

United States at 90. While service providers remain the subject of government regulations, companies that create power can sell it in an open market.However, even after the deregulation of service providers, the physical lines carrying strength to households and business remain regulated. Texas found that customers in deregulated areas pay for electricity more than in areas that are still subject to government regulations.

Although electricity deregulation does not work exactly as planned, it is not without any benefit. In some cases, the discovery of the lack of fluctuation in demand has caused electric companies to develop a more efficient way to charge for electricity. On the wholesale market, price fluctuations change on the basis of factors such as daily and weather conditions. In the future, electricity customers may be able to take advantage of the benefits of these fluctuations by planning most of the use of electricity to match cheaper prices.