Customers May Pay More for Deregulated Electricity and Gas

For many years, many states have been incorporating deregulated electricity and other utilities. However, what should have been a benefit to many consumers has resulted in increased fees and charges on their utility bills.

Deregulation of utilities should ensure the utility companies are being competitive in their pricing, and customers should be able to make choices regarding their utility companies.

Texas is one of the over a dozen states that have deregulated electricity and gas. A recent article in the Texas Tribune has noted a very recent decline in electricity and gas prices. However, if the costs are studied over the last decade, it is possible that Texans have paid far more in utility costs than they should have.

Over ten years ago, Texas deregulated electricity and gas utilities, allowing Texas citizens to choose the companies that deliver their energy utilities.

A few cities in Texas are not deregulated. In essence, they are considered energy monopoly cities. These cities include Austin and San Antonio. A new report has recently shown that 85 percent of the state, which lives in deregulated energy zones, has paid much higher rates for energy than those who live in monopoly cities.

The Texas Coalition for Affordable Power report showed a slight recent decrease in deregulated electricity and gas prices from 2012 to 2013. But if the data is looked at from 2002 to 2013, it shows a much higher energy cost to the consumer over time.

For example, during that time, the average household paid nearly $5,000 more in energy costs than those who lived in monopoly cities.

Even though analysts say that the deregulated utility market is improving, according to the Texas Tribune, and consumers are finding more competitive pricing, it is likely that those living in deregulated zones have paid much more than they should have over the past decade.

Higher costs have been blamed on continued inefficiencies on the part of electricity and gas companies, customer confusion, and high prices for energy all around.

It should be noted that right after deregulation in Texas, there was a spike in gas prices. Some deregulated companies entered into high-cost gas contracts that took many years from which to recover.

John Fainter, the president and CEO of the Association of Electric Companies of Texas, told the Tribune that lately, “[t]here’s a lot more efficiency. People are better able to manage their electric use. The [retail electric providers] are developing more products to take advantage of.”

However, the report showed that the increase in costs is most likely due to increased fees, rather than increased energy costs.

Costs of energy to consumers have been rising faster than inflation, which indicates a rise in fees. Energy companies, it seems, are passing on the costs of new power lines and smart meters to their customers.

If you believe you have been unfairly charged for deregulated electricity or gas costs, you may be entitled to legal compensation.

Join a Free Energy Deregulation Class Action Lawsuit Investigation

If you buy your electricity and gas through an energy retailer in a state where energy was deregulated and your energy costs went up, you may qualify to file an energy deregulation overcharge lawsuit or class action lawsuit.

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