Energy deregulation in Texas is something that is fairly new to the United States as well as Texas
. Texas energy deregulation was the result of the coming into force of Texas Senate Bill 7 on January 1, 2002. Since then energy deregulation except for about 25% that stayed the under Public Utility Commission of Texas. It allowed consumers to decide where they buy their power that depend on consumer wills not has authorities to pressure them to select any particular supplier.
What is deregulation of energy mean? I'll try to be simple and brief with my explanation so it's easy for you to understand. In simple terms is basically the breakup of a company so it no longer has a monopoly in the industry.
Every body knows that Microsoft they were huge companies. Because they were so huge they had a monopoly in their market. Whenever there is a monopoly there is no antagonism and therefore no requirements to make lower their prices. The same thing is happening with the Energy TXU. Your local electric company can no longer supply you as well as force you to pay for their generated electricity. On your bill you will notice that there is a supply side all of the bill as well as a generation portion of the bill. The generation of the bill is the cost to make the electricity bring the electricity to the electrical company and any fees that are attached. Supply-side is the portion of the bill that transmits the electricity from the electrical company to your house.
You can take advantage of the deregulation by choosing your own Texas Energy suppliers. We are now has the best choice for the people of United State of Americas choice. Besides that several independent companies which offer you better rates then the rate that is charged by your local electric utility company.
The supply end of the electricity will still be provided by your local utility company. They are still the ones that maintain the electric lines and that respond to any emergencies or problems. The only difference that the consumer notices is the lower rate but they pay for the electricity. Still the same bill no change in habits.