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How Stream Energy Has Embraced Energy DeRegulation

Oct 13, 2007
In 1980 about thirty- five percent of residential energy consumption which also included electric generated energy accounted for the total United States consumption of energy. Therefore, governmental intervention was necessary due to inefficient regulation of the residential appliances market. The market failure is basically associated with consumer appliance choice and utilization decisions.

More over, according to the Federal Trade Commission, about half of the consumers utility bill is contributed to heating and air conditioning. Subsequently, controlling these expenses would be worthwhile. The Commission also states that there is an explanation for the popular comparison of electric and gas. Simply, the energy source that is better for one home may not be the best for the other.

Specifically, the individual must evaluate their particular circumstances in order to determine which appliance would efficiently accommodate their situation. Essentially, the consumer is concerned about the United States lack of control over its energy future.

Electricity has been a critical sector, supporting a wide range of consumption. Certainly, consumers continue to associate its services with modern life. Electricity accounts for $210 Billion of annual sales which makes it a major manufacturing sector. In lieu of these factors, it is not difficult to apprehend the necessity of de-regulation. Furthermore, de-regulation can not be achieved over night.

Lawmakers and regulators had the tasks of dismantling current regulatory regimens. The de-regulated industries must now adjust to the new competitive environment to achieve maximum efficiency. One emerging company that has done well and earned the trust of consumers is Stream Energy.

The market of natural gas emerged in 1984 to satisfy regulators concern regarding the costs of utilities. As the United States were forced to de-regulate, they conceived that natural gas is an important source of energy. An essential benefit for the consumers is the reception of clean and affordable natural gas that supplies the resource to stay warm throughout the winter.

Even as the utility rate is regulated by the government board, the consumer is not necessarily required to pay market costs. Actually, the marketers have the flexibility to purchase gas supplies when its cheaper, ultimately saving the consumer money as well. Overall, the consumer will be satisfied with its stability in energy costs and maintenance of a prosperous economy. To date, in the United States, natural gas accounts for about one quarter of energy.

Investing in natural gas would be similar to obtaining a mortgage. In the new de-regulated industry, the consumer will be able to choose contracts that consist of one to five year terms. More so, there is a fixed variable rate that you are locked into for a long period of time. An experienced gas manager can assist the consumer to obtain the lowest price. Thus far it appears that most consumers have decided to go with marketers to preserve money. Specifically, electricity has proven to inevitably costs the consumer more per year.

However, it is significant to note that this may vary in different areas, especially according to climate. Even so, the average prices for gas prices are much cheaper, especially for generating heat, despite the increases in the market. Coincidently, about twenty percent of electricity in the United States is generated from natural gas and petroleum. Therefore, if the price of one rises, the other does as well. Stream Energy has been able to keep these costs lower than their incumbent companies and passed those savings on to consumers.

Finally, if the consumer decides to use an alternate energy source, he should contact a knowledgeable energy company to ensure that he receives the lowest possible variable or fixed rate. If the consumer is more comfortable with a specified monthly bill, go with the fixed rate. When a consumer switches to a new energy provider, service will not change. It appears that the consumer will certainly benefit from the de-regulation of the government as it relates to electric and natural gas energy resources.
About the Author
Find out how to earn an income by teaching others how to inform people about reducing their utility bills at: Ignite and Stream Energy and explore the possibilities that energy de-regulation has created.
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