Texas Deregulation a Success? Just ask Reliant.

By admin • January 13th, 2009

Reliant Energy pays for a study and has it published in the Houston Business Journal November 17th 2008. And it concludes that the Texas’ transition into deregulated electricity markets was successful.

Who are they trying to fool? No one believes that. Just look it up, the majority of articles that you find  are talking about what a colossal failure it has been.

Here is the article in the Houston Business Journal.

I myself am stubbornly pessimistic about the reason for such a study, and for the market it was published in. Houston has had, and still has pretty high energy rates. Deregulation is supposed to mean take away the monopoly, and let the free market work. This suggests that there will be overall efficiency of markets and lower prices as competition for customers kicks in. But, why doesn’t this report say something to that effect?

Instead it says things like…”Overall successful competitive market”. And no explainations as to what that is supposed to mean.

Look, the people of Texas expect reasonable prices. They don’t want to have the highest prices in the USA. Why not discuss where Texas was in relation to other states BEFORE regulation, and after? Texas prices have soared, and people have clamored to their legislature. TXU was broken up, but, where are we? Suddenly Successful?

Please don’t tell us that because the oil and gas markets are down, that NOW Texas is successful because prices are better. Texans may feel better off than a few months ago, but, maybe they should look at the current prices other states are paying for electricity.

The article also brought up the existence of  structural attributes, such as the number of buyers and sellers, low barriers to entry and market access and transparent prices, options and market rules. Gee, how nice, but is this what robust markets are made out of? You can get alot of buyers and sellers, in a market that is fat with profits, and that doesn’t mean at all that it is an efficient market.

And, I do hear marketers that work for electric companies talk about Texas as the only state you need to market it. Because their is so much money to be made with commissions for sales people, and so many companies can undercut the major electric companies.

I am sorry, but if this is what Reliant thinks is successful deregulation. Then, what the company thinks is success is the exact opposite of what the consumer thinks.

I just today switched a customer of Reliant to one of these newer  up and coming electric companies. The lady told me she was charged 18 cents per KwH by Reliant Energy, in West Texas of all places! Where energy is supposed to be cheap.If deregulation was in fact “successful”, this lady would know she could get a better price from another company. She got 12.6 cents a KwH or so. That is alot of FAT in the system. Why didn’t she know? Why do most people FEAR changing electric companies?

I’ll tell you part of it. They are afraid. They remember when they changed telephone companies, and weren’t told the whole truth. Then these huge bills came. Well, the people I have talked to are poor, their jobs are horrible. They don’t even get to work 40 hours, and they are afraid to change companies. That my friend, is not what I call successful deregulation.

I am afraid that what Reliant Energy means by “Successful”  deregulation is, that they are still intact as a company.

Blogged by admin at http://cheaptexaselectricrates.com

Compare your residential and commercial rates, don’t pay more than you have to. Get your cheap texas electric rates today.

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