lundi 7 octobre 2013

Why Texas Deregulation Electricity Is Beneficial

By Molly Morse


In 2002 Senate Bill seven took effect in Texas mandating the deregulation of electricity rates. The change over process has taken time but most areas of the state have been converted. Consumers may now choose who will supply their power on a individual basis. The Texas deregulation electricity has been very beneficial to the customers it serves.

With the "price to beat" being set high enough for smaller businesses to make a profit and compete and low enough that the consumers were not being taken advantage of the outcome was predictably successful. To control the grid and avoid disruptions in power and market price swings they moved from zonal to nodal congestion management.

There are exceptions to the regulations whenever a public utility company owns and operates their lines and equipment and chooses not to accept the deregulation. In this case the option to choose power companies is not available to consumers. Never the less it has been noted that, state wide, eighty five percent of all commercial users and forty percent of residential users have changed providers.

Electricity delivery is the same as it always has been. The company you have chosen takes care of customer service and the billing process but the poles and lines are maintained by the same utility companies that owns them. There should be no disruption in service when you change providers.

Private utility companies can no longer hold consumers hostage with service and rates that are controlled by one person. Competitive market prices are traditionally lower and reflect what the entire state is paying. Renewable energy resources also get a chance to compete in an open market. Wind energy production in Texas has surpassed California as number one in the nation.

Electrical suppliers want your business. They are competing on all levels for it. They cannot afford to lose customers from a lack of service or because they have priced themselves out of the market. Many are exploring alternative sources for energy as an accommodation to the consumers that prefer green energy over oil or coal based products.

Customer service is another area of improvement in the utility industry. If the customer is not treated fairly and with dignity and understanding he or she is able to change suppliers by simply picking up the phone and shopping for a new company. They are not tied by location to a single source to meet their needs.

Over fifty percent of customers have not changed energy companies. Some people feel they do not have the extra time to sort through the various companies and their policies and so do not make any change to their service. Many are afraid that they will be without power during the exchange. The system is set up in such a way that the transfer is seamless and with out disruption of power. Others are simply content with the service they have been receiving and choose not to change.

The consumer appears to be the one who benefits the most from the Texas deregulation electricity changes. With lower prices and higher quality of service at their disposal they are able to make choices that impact their lives and budgets on a notable level. The model shown here demands that more states follow the leader when it comes to deregulation.




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