Energy Deregulation for the state of Massachusetts
Massachusetts was actually one of the states that was really late to the deregulation trend. It took until 2005 for Massachusetts to allow consumer choice by implementing deregulation of tis energy markets which included both gas and electricity.
For Massachusetts based business and industry owners, the gas deregulation has proved to be incredibly successful. Since business and industries that use heavy machinery rely a lot on natural gas, this deregulation has been able to help them save a substantial amount of money on the costs associated with natural gas usage. Once competition hit the market, gas prices went down remarkably and both residential and industrial customers were able to save a lot of money by taking advantage of that.
The way you save money in a deregulated market is simple. A lot of different energy providers enter a competitive market which is why they keep lowering their prices to appear more appealing to potential customers. This automatically means more costumers from them, but it also obviously means a lot of money saved for the consumers.
However, despite all those good things, the deregulation has not proved as good for Massachusetts as it has for other states. Despite this deregulation having a lot of benefits for the consumers, only 9000 out of the astonishing 2.5 million businesses and residential customers have switched their energy supplier. That is a sad state of affairs, because the competitive market will never improve, and deregulation will not reap any benefits if people refuse to actually participate in the competitive market and take advantage of the deregulation process.
It is possible for mass electric residents to save nearly 47 percent of their energy bills by choosing supplier with better rates than their utilities, but people still have not taken advantage of a system such as deregulation. Since people are not using the market the way it is meant to be used, the number of licensed retailers is also slowly dwindling down. The goal to reach nearly 10 percent cut in the rate for customers has been nearly achieved in the years since deregulation has been in effect, but the whole process of deregulation has not had the benefits that are expected of it.
For deregulation to have any positive impact, the one thing that is necessary is for people to actually take advantage of and venture out into this competitive marketplace. Prices will go down, energy supply will increase, and green energy technologies will be supported.