Texas Electric Rates are Affordable Thanks to Deregulation

There are many reasons why the state of Texas chose to deregulate electricity. However, one of the most advantageous things that you as the consumer would be interested in would be the Texas electric rates. Because of deregulation, the rates are definitely more affordable than ever, and that is very good news for you. You may be wondering, though, just how deregulation would have such a dramatic impact on rates. Here are some things that you will want to understand.

The main purpose of deregulation was to avoid monopolies. You may already know that monopolies are big problems in private businesses. That is why very large corporations are often forced to break up. When one company has a monopoly, then they have no competition. That means, they have total control over the market of the item or service that they offer. They can charge the prices and they can offer the level of service that they prefer. The result of the monopoly is that the consumer falls victim. The consumer has to pay the high price and has to deal with low quality customer service.

In the case of utilities like electricity, it is not normally considered on the same level as the private company, but there can still be a monopoly. When an electric company is in total charge of the area that they serve, a monopoly has still been formed. Deregulation of Texas electric rates is designed to break up those monopolies that have formed. With this break up, numerous different electric companies are capable of providing service to the same area. How does this make rates more affordable?

The basic answer is competition. Now, consumers can have their choice between different companies and that means they will choose the company that offers better rates and services. This forces the companies to offer better services and more affordability. For you, that means Texas electric rates are more affordable.

As someone who lives in Texas, you have an advantage that residents of many other states do not have. You can make a choice and pick the electric company that you would prefer. Because energy deregulation has created a more competitive atmosphere, you can have access to much lower cost electricity. You may be surprised at how much you can save on your electric bill when you choose from the electric companies that are available in your area of Texas.