Electricity rates have gone through many ebbs and flows throughout the years. The act of deregulation in the electricity market in the state of Ohio has allowed Ohio electricity rates to become competitive for not only the consumer, but for the provider as well. Over two decades ago, deregulation started to change the way that consumers purchase electricity in many states across the country. Deregulation began taking apart the stranglehold that utility companies have had on the electricity utility company. In some states deregulation has not offered the types of results that you would like to see, but in many other areas, deregulation has produced lower rates and allowed for utility companies to produce energy at a much lower price, offering the opportunity to better serve the public. This is the goal of deregulation, to allow people to pay lower rates so that they don’t have to rely on additional government programs to provide them the electricity that they surely need.
Similar to what has taken place in other industries that have deregulated, the energy utility industry has provided better service and lower rates for their consumers through deregulation. Before deregulation, electricity rates in Ohio were very expensive, while the power actually coming off of the grid was cheap. In today’s deregulated market, the price of power to the consumer has fallen dramatically, while the price of the grid has increased. Companies are in effect competing with consumers to try and bring them the lowest rates that are possible. In today’s marketplace the cost of generating electrons currently only accounts for half of the overall cost of electricity. Government fees and taxes make up the rest of the cost. In Ohio, the rates that consumers pay for electricity has increased by over 50% in the last 5 years.
Competition is a very important thing in any industry. If there is only one provider for electricity or any type of a service, it limits the options that the consumer has and allows the service provider to charge any rates that they want. Ohio and other states have made it easier for consumers to get the rates that they want by allowing them to effectively shop around to get the best rates possible. The only difference is that you now receive electricity through an independent company that is dedicated to providing the best rates and service to their customers, which is great for you.