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The Modern Case for Competition in Power Markets

Benjamin Zycher makes the case for competition in power markets in National Review.

The C3 Take
  • Competitive markets give consumers a choice in who provides them with power, which increases competition and often leads to lower prices.
  • Open power markets have also been shown to be less emissions-heavy than regulated energy markets.
  • Competitive energy markets benefit consumers and the environment alike. As more and more states set emissions reduction goals, they should turn to deregulated energy markets to get there.

“Almost by definition, a competitive wholesale market satisfies consumer preferences better than possible for a monopolistic market. A competitive system shifts investment risk in the efficient direction, toward producers making investment decisions and away from customers who are forced under the traditional system of regulated rates to pay for mistakes. Without the regulated utility rate structure, it becomes much more difficult to use power prices to force one group of customers to subsidize other customers and interest groups pursuing ideological goals.”

Read the full article here.

The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.

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