Have consumers saved money in deregulated markets thus far?
The record for deregulation is mixed. Savings have been comparatively small. There are several reasons for this, and prices are still expected to fall in the long run. First, the transition to fully competitive markets is not being done in a single step. Savings during the transition period were not expected to be very large in the early stages. Second, utilities have not kept up with growth in power use, so power markets are starting out with tight supplies, which keeps prices high. Third, it takes time for new retail markets to mature. It will probably be five or more years before retail power markets offer meaningful savings and power supply options, however, deregulation has already resulted in a significant expansion of green power options.
