Discussing the meaning of deregulation should be approached in many different ways. You can always look up the word in a dictionary, but that will not give you the full picture. The opportunities presented by deregulation and the specifics of energy deregulation can only be revealed through a broad analysis covering every single aspect.
The Merriam-Webster dictionary defines deregulation as "the act or process of removing restrictions and regulations". This definition could explain the meaning of deregulation even when tied to the energy market, but keep in mind that some rules and regulations still have to apply.
The freedom of choice differs from one state to another. Some states have more restrictive policies, while other promote an open market. Regardless of the level of freedom presented, deregulated markets offer a chance to choose and with it a chance to save by making the right choice.
A commonly cited disadvantage of deregulation in general is that saving opportunities are presented only up to the point when one company wins the trust of the majority and corners the market. Afterwards, the meaning of deregulation in very small as there is no more competition to stir things up.
However, this is not something that you should expect to happen to the energy market. Competing suppliers offer energy solutions involving different energy sources and every energy source has its day.
Even if most of the major players on the energy market decided to merge, small suppliers will still be able to compete.
These days, with the renewable targets in place across the U.S and the world, solar and wind are both heavily subsidized. This gradually shifts the market in direction of renewables, but it does not mean that the suppliers offering power derived from nuclear, gas or coal will simply disappear.
In 2017, when government subsidies end, the market will again have to readjust. Access to energy sources plays a large role in determining energy price as well, so as access changes, so will prices in different regions. The energy market will constantly fluctuate and offer new and exciting opportunities for residential and business energy users.
So, what does deregulation mean in your state? If you live in Alabama, Alaska, Colorado, Hawaii, Idaho, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Nebraska, North Dakota, North Carolina, South Dakota, South Carolina, Tennessee, Utah, Vermont, Washington or Wisconsin, than deregulation does not mean a thing.
All of the above mentioned states have not made efforts toward deregulating the energy market. However, this does not mean people in those states have no way of lowering their utility bills. Click here and continue reading about alternative ways to save.
Those who live outside this group of states can always contact us and find out the exact meaning of deregulation in their state. Our consultants will be more than happy to discuss the subject at length and provide you with advice on lowering your utility bills. Consultations are free of charge, so do not hesitate to call.