Deregulation has failed in lowering prices
According to the Journal of Economic Issues, economic deregulation of electric and gas utilities has not succeeded in lowering price, promoting greater consumer choice, constraining market power or improving infrastructure performance.
In some areas of the United States and Canada an agenda for re-regulation is proposed. The reforms would continue the work of economists in the field of public utility economics.
Traditionally, most electric and gas utilities have been privately owned but regulated by government in the United States and Canada, while service has been provided by publicly owned monopolies in Europe.
The original campaign for free markets was successful at both federal and state levels in the United States. The Federal Energy Regulatory Commission became the champion of market-based wholesale electricity and gas rates. Twenty-one state legislatures enacted some form of deregulation for electricity and natural gas, while in Europe, privatization was used to promote efficiency and innovation through increased reliance on market forces.
Related News
B.C. Challenges Alberta's Electricity Export Restrictions
CALGARY - In a move that underscores the complexities of Canada's interprovincial energy relationships, the government of British Columbia (B.C.) has formally expressed concerns over recent electricity restrictions imposed by Alberta. These restrictions, which limit the export of electricity from Alberta to neighboring provinces, have significant implications for energy sharing, economic cooperation, and the broader Canadian energy landscape.
Background: Alberta's Electricity Restrictions
Alberta, traditionally reliant on coal and natural gas for electricity generation, has been undergoing a transition towards more sustainable energy sources. However, the pace and nature of this transition have led to challenges in meeting both domestic demand…
