Energy Deregulation for the state of Maine
Customers of energy in Maine were able to switch their energy supplier after the Maine Public Utilities commission allowed it in 2000. All the state owned utilities which were the only ways to get gas or electricity were now just options in a competitive market. Now customers had the option of choosing from amongst multiple different electricity and gas producers in the market.
As a default, residents and companies are assigned utilities that are in their territory. These are responsible for giving you gas and electricity. If you choose to change your provider, then the same utility will be responsible for providing and delivering the gas to you, but the source of the gas will obviously be the company you choose. The company just uses the existing infrastructure that the utility has advantage off, and the utility then bills the customer just fir service charges and not for actual gas or electricity cost.
Now, as a result of successful deregulation, Maine’s electricity rates are the lowest than all parts of New England! Without any coal deposits or federal funded backing, it is incredibly different to stabilize retail prices for energy, but Maine has been trying its best to innovate and pass successful deregulation policies that help the market as well as the customers in Maine.
The whole concept of deregulation is to ensure competition in an otherwise unfair and monopolistic marketplace. Once completion is introduced; this is what happens:
1. Monopolies are broken
Usually, if one or a few companies have power and are the dominant retailers in a specific market, they can easily create monopolies. They have the power to hike up prices, which is why rates of electricity and gas go up. The more competition in the market, the more chances of breaking the monopoly.
2. Services are improved
When there is more competition, each company is motivated to improve their services and ensure that they appeal the most to potential customers. This constant rat race allows for customers to benefit from better services.
3. Rates go down
With a lot of competition comes the chance of the retail rate for something to lessen considerably. In competitive deregulated markets, rates of electricity and gas go down rather fast, and customer can choose wisely and save up to 20 percent on their bills.
4. More energy produced
When you have more companies producing electricity, you have a lot more electricity coming into Maine for its residents. This ensures that the chances of any energy crisis are also lessened considerably.