In monopolies, companies who are in control are in the position to raise the prices of their products and services even without additional value given to the consumers. This is true with any industry, even for electric generation and distribution. Consumers have no option but to accept what is given them at the rates dictated to them since they are left with no other alternative to choose from.

With electricity deregulation, the rules have drastically changed and consumers in Texas now have the power to select their electricity providers. Implementation is dependent on the state, as states like Texas have fully embraced the rules set by deregulation, while others have derailed implementation pending further study and planning.

What is Electricity Deregulation?

The basic concept of electricity deregulation is to empower consumers to choose who or what company shall provide their electrical power. Like in the state of Texas, most residents can choose their electricity provider, and plan depending on their individual needs.

Switching from one company to another who will provide electricity to residents will not result in a disruption of services for a house or business establishment as the same electrical wire and poles will be used -- only the company selling the electricity will change. The difference would lie in the price or power rates that a particular electric company shall offer, as well as the quality of service and responsiveness that they provide their customers.

What are Potential Issues with Electricity Deregulation?

Energy deregulation is implemented on a state-by-state basis however not all states, as well as consumers, have totally embraced this implementation. For one thing, many states find the redesigning of their electricity market too complicated for implementation to occur immediately. Other consumers on the other hand are still in a wait-and-see mode and have not yet made the move to switch to another Electricity provider.

This could be due in fact to past experiences by other states like California, whose initial implementation of electricity deregulation was plagued with blackouts, electrical supply emergencies, and major utility companies diving into financial trouble due to sudden price spikes.

What Benefits will Consumers get with Electricity Deregulation?

Despite these past issues, several states like Texas and their consumers have benefitted significantly from the implementation of electricity deregulation. Private consumers, commercial establishments and businesses have benefitted from this in more ways than one as outlined by the list below:

• Electrical deregulation allowed the entry of alternative energy providers that provides clean and renewable electricity, making it safer and better for the environment

• The playing field for industry players and providers are leveled out, with existing and upcoming service providers have an equal chance of providing service to consumers

• Consumers have the option to choose providers that offer the most cost effective power rates package to their clients. This same benefit can also be enjoyed by commercial and other business entities.

• Regional differences in power rates between states can be leveled out and standardized

• The entry of more service providers creates more jobs for the people of the local communities

• Service quality and reliability is greatly improved due to the increase competitiveness between providers.

About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com