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What is Deregulation? Empty
PostSubject: What is Deregulation?   What is Deregulation? EmptySun 21 Sep 2014, 8:28 pm

What Is Energy Deregulation?
Energy deregulation is a law that was enacted by the federal government in 1998.  When an industry is deregulated, it simply means that there was found gouging of the consumer with prices for that commodity.  In this case, electricity and natural gas.
The states and federal government found prior to 1998, that there was no competition in the energy industry.  Meaning that the consumer, residents and businesses, had no choice but to pay whatever was “demanded” by the utility companies in your region of the country.  Without any kind of choice and unfair pricing, that was a monopoly.  Because a monopoly existed, that created the basis of the ruling for energy deregulation.

Even though energy deregulation is relatively “new” to most people, this is not the first time that an industry was deregulated. This is exactly what happened to the telephone industry back in 1984. Before that date, AT&T was the ONLY supplier of telephone service, local or long distance. The states and the federal government came together and deregulated the telecom industry so as to save money for the consumer because AT&T was the only game in town and could expense what they wanted. There was no choice. The telecom deregulation created many new firms and an industry which is about $80 Billion per year. Those who captured that growth made a fortune.

After that deregulation of telecom, many companies were started and grew from that.  They serviced businesses and resident for local and long distance telephone service.  Those companies grew and many millionaires were created from that growth industry. Look at what telecom is today.

Now you have dozens of companies that service consumers telephone needs, all of them generating great income.  The telecom industry has even expanded to the cell phone industry, but that was also due to advances in technology.  Well energy is on the same path of growth and expansion into the future. And as you can see from the other pages on this blog, the wealthy have their eye on the industry as well.

So what does that mean for you as an business minded, entrepreneurial minded person.  Well, it gives you the ability to reap benefits from this growth industry as the wealthy do day in and day out. This is one of the secrets of the wealthy and how they continue to create the wealth that they enjoy!

Why is Deregulation important?
Deregulation gives consumers choice - the power of the buyer. A deregulated market allows you to choose your commodity supplier. It also motivates retailers to differentiate their products from the utility and those of competitors by developing innovative features, pricing plans and options that would have otherwise not been available to you.  Green energy products are an example of innovative programs made possible by retailers. In deregulated electricity markets, these products support the generation and injection of renewable energy into your electricity grid, making it greener than it otherwise would have been. In a deregulated natural gas market, these green products support emission reduction projects that prevent polluting gases from entering the atmosphere and help contribute to a cleaner, greener environment.
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