Energy Deregulation: The Future Of Energy Industry

All About Energy Deregulation

Energy Deregulation Companies
Energy Deregulation Companies

What Is Deregulated Energy?

What will you do when you are not satisfied with your energy provider? Due to the monopoly of some companies in the energy industry, you might be charged higher then your electricity consumption. You may not get good support from the company or even in worse case you might not even get electricity. What will you do then? I don’t think you could have done much if it was 1990’s. Thanks to the many state government of The USA, who passed the Energy Deregulation Law. Now you have the liberty to choose your electricity provider.

When Government controls big industries through laws, it is known as Regulation. The biggest example of this is the Energy Industry. Though there are many private companies operating in this sector, but due to very strict law and very controlled nature of the Government very few companies enjoy full monopoly over the energy sector.  Voices have always been raised to deregulate the energy industry.  In USA when many states deregulated Energy, It allowed consumers to choose their energy supplier and to increase the competition among the electricity and natural gas supply.

Now people were allowed to decide from whom they will be buying their electricity. This proved to be a great test for service providers to engage with customers and provide them energy at the cheapest prices.

Energy Deregulation also allows the consumer to choose whether they want electricity produced from coals or some other non-conventional source of energy such as wind, hydroelectricity or solar power. As many consumers have a strong side for their environmental beliefs.

People tend to know more know about electricity generation, transmission, and pricing. Even among people living in states where energy has not been deregulated wants to know much more about how energy sector works financially. You can always get this kind of information on the internet.  For example, In Texas, the Public Utility Commission (PUC) of Texas claims to provide people with unbiased information about their energy options.

Why Deregulation Of Energy Sector Is Necessary?

Deregulation is not a new concept in United States. There have always been complaints about the interference of government in business a lot, in the form of regulation and laws which does help neither the consumers nor the companies. So to end deregulation in the energy sector, many company fought for and won deregulation rights.

There has always been a misconception among the people that removing regulations mean to abolish all laws. Actually deregulation makes the rules simpler and easier to follow, benefitting both the sides.

Over 24 states in the USA have Deregulated Energy. Names of the states are listed below:

Arizona, Arkansas, California, Connecticut, Delaware, Illinois, Maryland, Massachusetts, Maine, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Virginia and Washington DC.

Future of Energy Industry:

The US electric industry is a $220-$250 Billion industry. It is often called the last great government-sanctioned monopoly. After the Deregulation process, the Energy Industry is going through very big changes. These massive changes include participation of more and more private companies in the energy sector. It will certainly result in cut throat competition for consumers.

According to a survey, 83 percent people living in states where govt. still regulated the Energy Sector, wants to be a part of deregulatory energy system. The reason for this is the success of deregulation of the telecom industry and the profit made by the consumers.

How People Make Money From Deregulated Energy:

Make Money With Energy Deregulation
Make Money With Energy Deregulation

Once An Interviewer asked Bill Gates “What Industry will produce the next Billionaire like himself.” He Replied “Energy Deregulation is the next business to make millions.”

Here comes the best part. How you can make money while you pay your own energy bill. Companies like Ambit Energy, ACN and momentis have taken the battle for customers to the next level. Now people can even generate regular income without any problem. A company has come up with a new marketing strategy. In which they give money to the customers rather spending $ on advertisements. It is like “Word Of Mouth” marketing.  A customer will get benefit every time he joins a new member under him and his profit also increases with time.

Is Energy Deregulation a Scam?

There are some people who ask themselves is this Energy Deregulation a Scam or will it really help us save money and generate more income. The reason why people call it as scam is the fact that most companies involved in chain promotion  are mostly fraud and scam activities. So it is natural to doubt anything which includes MLM.

In case of the Energy sector, what people can do to avoid being scammed is that they should avoid joining any company which first requires some fees to participate. There are many fraud cases where companies asked for money first before joining and then ran with the money of the customers.


All said but the fact remains intact Energy Deregulation is an Industry which is growing and will continue to grow rapidly. Govt. deregulated it just to benefit customers and increase competition and which is happening. We can see the prices being lowered and expansion of services to the customers. Sooner or later this form will be accepted in most parts of the world.

Warren buffet once said” The Deregulation of Energy will be the largest transfer of wealth in history.”


Author: Naveen Thakur

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