Why,Electricity,Deregulation,A technology Why Is Electricity Deregulation Appealing
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The electricity power industry has been working since nineteenth century as the regulated industry due to which the monopoly of the big electrical supply countries developed world over. But by the end of the twentieth century the governments of different countries decided to allow the restructuring of the electrical power industry and allow more retailers to enter the market and supply power more efficiently at competitive prices.Years back the major problem in the world was that there was no capital and people knew where to invest. While now the condition has changed so much that the people have the capital money but they are not sure where to invest. Due to this lack of stability in the economic conditions the power industry is a very good portal to invest. This will result in the better service to the consumers. And the consumers will be given the power to select that which retailer will be best suitable to them in terms of service and cost. The model of the Texas deregulation is the best model to exemplify. Especially a huge benefit can be derived by the business industry from this fact that they have to pay very heavy costs in the name of utilities. Also this will lead to the development of the new source of energy and move from the expensive resources to the cheaper ones. Like the hydro electricity, coal energy, solar energy and the wind energy are much cheaper and less excavated forms of energy. If these alternative sources of the renewable energy will be used, the pollution will be highly decreased and the earth will become a better place to live in. Not only the Earth will take the benefit but also due to the decrease in the production cost much cheaper energy will be provided to the consumers. Thus people will have to pay fewer bills and become more economically prosperous.With the competition in the open market all the companies will try to minimize any form of shut down and blackout in the supply area to maintain their reliability. In the regulated system of monopoly the providers are aware of the fact that only they have the ability to supply the power. They take unnecessary profits putting the general public at a loss. Also they never try to improve the service resulting in load shedding and other interruptions more over as the electricity poles are situated at long distances there is lot of line loss resulting in the increase in the cost of electricity. If more providers will be involved the line losses will be controlled by placing the poles at small distances.Deregulation of the power industry will also cause huge economic benefit by increasing the number of jobs in the country. People with huge investments will easily invest their money making profit in the power industry. Others will have a chance of being recruited for technical assistance, marketing, wiring etc. In this manner a huge burden of unemployment will be lifted from the country.
Why,Electricity,Deregulation,A