Energy deregulation is something that America, as well as other places in the world, is slowly beginning to adopt. While the idea is a great one for many people, some people have some concerns about it. Several people are currently debating if energy deregulation is really such a good thing.

What is Energy Deregulation?

Energy deregulation allows energy consumers to choose their electricity provider as well as their energy plan. This means you can choose from several different options and find the one best suited to your lifestyle needs. Areas without deregulation have to simply accept the energy available to them at the rate provided. Deregulation allows for you to find the best electricity rates and save on your energy bills. With deregulation, comes competition. In order to stand out from the competitors and to win your business, companies will often offer unique electricity plans with extra benefits.

Benefits of Deregulation

Benefits of Energy Deregulation

  • Consumers have to power to choose their energy plan to best fit their lifestyle and save money
  • More renewable energy options are available and many energy providers offer plans with 100% renewable energy, like TXU Energy
  • Now that consumers have options for their energy, they have begun to be more aware and pay more attention to electricity prices and where it comes from
  • Utility companies no longer have a monopoly on residential energy

Downsides of Deregulation

Downsides of Energy Deregulation

  • The competition drives utilities to cut costs and these costs often come from programs funding low-income families and helping them get electricity
  • Electric companies have begun to take advantage of states with low environmental standards in order to produce cheap electricity
  • Provider companies may eventually collectively raise energy prices across the board
  • The consumer will have to put some work in to find a provider and educate themselves on their options


There are definitely some risks involved with energy deregulation, but there are also several benefits of deregulation. Right now, not all of America is deregulated, but many states are beginning to go in that direction. The states that have already adopted deregulation are Connecticut, Deleware, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennslyvania, Rhode Island, and Texas.