Energy Deregulation Business Opportunities Home Based Business That Anyone Can Start
By: Deana Nall
As the energy deregulation business opportunities industry enters open markets, possibilities abound in this new, deregulated area.
Energy deregulation business opportunities can sound complicated. But for energy customers, these ground breaking industry changes come down to one crucial concept: choice.
Before energy deregulation business opportunities, one utility company provided customers with energy service. In 1978, Congress passed the Public Utility Regulatory Policies Act, which laid the groundwork for energy deregulation business opportunity and competition by opening up wholesale power markets to non-utility producers of electricity. Congress voted to promote greater competition in the bulk power market with the passage of the Energy Policy Act of 1992. The Federal Energy Regulatory Commission (FERC) implemented the intent of the Act in 1996 with Orders 888 and 889, with the stated objective to “remove impediments to competition in wholesale trade and to bring more efficient, lower cost power to the Nation’s electricity customers.” The FERC orders required open and equal access to jurisdictional utilities’ transmission lines for all electricity producers, thus facilitating the states’ restructuring of the electric power industry to allow customers direct access to retail power generation, according to the Energy Information Administration (EIA).
Under energy deregulation, the delivery of energy is still regulated and is the responsibility of the local utility company. But customers now have the freedom to choose their energy supplier. With the creation of energy deregulation business opportunities, competition in an industry in which there was once none, customers can, for the first time, choose their energy provider. And they’ve been responding in huge numbers. Because the old incumbent utility companies no longer hold a monopoly on the energy market, customers have switching to alternative energy suppliers. This has introduced competition into an industry in which it had never previously existed.
What About Energy Deregulation Business Opportunities
Because energy deregulation has opened energy deregulation business opportunities markets to competition, government mandates no longer control retail pricing. Instead, rates are now based on the market forces. Now, energy customers can shop for the best rates. Of the states currently in various stages of energy deregulation, half are at or below the national average for utility rates, based on the EIA’s 2008 statistics. And energy deregulation benefits more that customers’ pocketbooks. Most energy deregulated states are utilizing clean and natural energy sources. The majority of states still operating under government regulations rely on “dirty” sources of energy-primarily coal. But in energy deregulated state such as Texas, “dirty” energy sources are being phased out. Coal is no longer a majority source of power generation. In fact, more than 60 percent of power sources in Texas come from “clean” and-or renewable sources such as natural gas, wind, solar and biomass.
The benefits of energy deregulation business opportunities don’t end there. With competition comes innovation. While operating under government regulations, utility companies had no motivation to innovate. In fact, the energy industry operated virtually the same way for more than a century. But now that energy deregulation business opportunities and energy customers have a voice, energy companies can’t afford not to innovate. As a result, energy deregulation business opportunities companies are exploring new ways to deliver a higher-quality, more cost-effective product to their customers. One example of up-and coming innovative technology in the energy deregulated industry is the smart grid. An intelligent monitoring system, the smart grid is essentially a data-driven overlay two-way communications on the transmission and delivery of electricity to customers’ homes. Eliminating the need for meter readers, the smart grid will utilize digitally based smart meters that will allow the energy supplier to read from a remote location. Once this revolutionary system is fully implemented, consumer will be able to monitor their usage in real time and communicate digitally with their energy provider in return.
With energy deregulation more recently under way, its future appears just as bright. Now that healthy competition has become part of the utility industry equation, energy customers are exercising their power to choose. And because energy is something everyone uses, energy deregulation industry is now a prime business opportunity.