Energy Deregulation for the state of New York
New York City is known as the city that makes dreams come true. It is also known for being an expensive place to live. Rent, food, groceries, taxis: everything is expensive there. The energy i.e. gas and electricity before 1996 was also incredibly expensive in New York City, but that all changed after the state of New York decided to bring about a lot of good change in the energy marketplace.
The deregulation of gas actually started way before the deregulation of electricity in New York. The gas market was deregulated in the middle of the 1980’s and larger industries and businesses were the only ones allowed to profit off of this deregulation. However, this soon changed and all residential, industrial, and business customers soon began to exert their consumer choice and profiting from this deregulation as well. In 1996, the electricity marketplace was also deregulated, and the city of New York was able to meet up its electricity demands.
One of the main reasons behind the need for deregulation in New York was pretty much the same reason that other states also chose to deregulate their marketplaces. There existed a cruel monopoly in the energy marketplace through which very few companies would exercise power over the pricing of energy and its production as well. When blackouts hit the city of New York in 1965, it was blatant that a change was needed and the state of New York had recognized it. To de-establish and break down the monopoly in the marketplace, deregulation was implemented. This allowed for a lot more competition in the marketplaces, hence lowering prices and ensuring that people were aware that they had other options. If these companies had any sort of power, that power soon dwindled down into nothing after the deregulation was implemented.
Since the deregulation has been implemented, more than half a million gas customers have chosen alternative gas supplying companies, and over 1 million residents of New York have switched to another electricity provider. New Yorkers are aware of the importance of choice, and it is that very choice that has kept that competitive marketplace going all these years. New York’s goal to create a competitive marketplace enabled millions of people to save hundreds of thousands of dollars not just for themselves, but also for the state of New York.