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
TransAlta Scraps Wind Farm as Alberta's Energy Future Blusters
CALGARY - The winds of change are blowing through Alberta's energy sector, and they're not necessarily carrying good news for renewable energy development. TransAlta, a major Canadian energy company, recently announced the cancellation of a significant wind farm project, citing a confluence of factors that create uncertainty for the future of wind power in the province. This decision throws a spotlight on the ongoing debate between responsible development and fostering a clean energy future in Alberta.
The scrapped project, the Riplinger wind farm near Cardston, Alberta, was envisioned as a 300-megawatt facility capable of providing clean electricity to the province.…
