Does Energy Deregulation Create New Jobs?

Energy deregulation is another term for giving consumers the power to choose which electricity

providers they want. Various states have introduced deregulation of energy and reaped the benefits in

the form of falling electric costs leading to increased savings for businesses and families.

However, the increased spending capacity of families and businesses does not comprise all the benefits

that energy deregulation has to offer. One of the main reasons why lawmakers are pushing for

deregulation is because of its ability to create jobs. Energy Deregulation Creates Opportunity

Energy deregulation is a choice decided at the state level, and some states, including Texas and

Pennsylvania, have allowed deregulation. Others continue to follow the old regulatory model, which

gives energy companies virtual monopolies over the production and distribution of energy.

In non-deregulated markets, the Public Utility Commission and the local energy company dictate

pricing, rather than an open, free market. Deregulation allows multiple companies to compete freely

for customers, increasing competition and thereby lowering electricity rates and providing more energy

options. Energy Deregulation and Its Impact on Texas

In a case study of the Texas market, carried out by Pennsylvania State University's Economics

Department in 2005, it was shown that as a result of deregulation and the resulting lower energy rates

competition brought, the housing market rose, giving a boost to the construction industry.

With lower energy costs, consumers had additional disposable income, increasing their buying power,

stimulating consumer spending in other areas. Increased demand for goods and services created jobs

across all industries, from manufacturing to retail.

Furthermore, the fall in prices charged by energy companies in Texas led to more capital in the hands

of enterprising individuals who eventually built start-up companies, further fueling employment.

Careful Deregulation to Create Jobs

Giving people the power to choose their electricity providers has a host of benefits beyond the

immediate lowering of energy costs. As shown in Texas, the lowering of costs indirectly helped

employment, and this is of utmost necessity in an economy which is on the fragile road to recovery.

However, while the Texas energy scenario is promising, in terms of job creation, it is equally true that

corruption of the type practiced by the electric providers in California can lead in the opposite direction

– higher energy costs leading to falling employment.

It is clear that energy deregulation creates much needed jobs, and following the examples of Texas and

Pennsylvania is a great start. Regulatory mechanisms like the price caps on energy rates and

transparency in financial dealings of energy providers may be the ticket to create jobs and reduce

corruption.

How to Take Advantage of Energy Deregulation

Changing electricity providers is easy, with several excellent online comparison tools to assist

consumers in choosing a provider that is just right for them. In addition to state-sponsored sites such as

PaPowerSwitch and PowerToChoose, there are also many independent comparison sites, such as Shop

My Power, that offer ease of use and fast comparisons. Customers can choose their provider based on

price, rewards programs, or green energy plans.

Bio: Shop My Power is an online tool to compare electricity or gas companies. Through non-biased

information, Shop My Power displays a variety of plans available in your area. You can sort companies

based on the criteria that are most important to you. Shop My Power is committed to providing

resources that enable people to choose the right electricity or gas companies for them.