Episode
45

Regulated vs Deregulated Energy Markets

May 11, 2022
|
Duration:
1952519
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In This Episode:

Join energy coaches David Arkell and John Pooley with producer Lysandra Naom on an episode on regulated and deregulated energy markets. This episode features what are regulated and deregulated energy markets, the difference between the two, how organizations can navigate these markets, and more. Check out our 360 Carbon Excellence Program.

Highlights

  • Understanding Regulated and Deregulated Markets:
    Regulated markets generally have a single supplier set by the government, with stable pricing and less consumer choice. Deregulated markets allow multiple suppliers, creating competition and offering customers more options in pricing and services.
  • Market Examples and Comparisons:
    The team compares Canada, where Ontario and Alberta have deregulated electricity markets, with the UK’s mixed water supply model. Differences in consumer choice, pricing, and supplier licensing reflect how regulations vary across regions.
  • Consumer Choices in Deregulated Markets:
    In a deregulated environment, consumers can select from various suppliers, leading to competitive pricing but also requiring more due diligence. Businesses must consider supplier stability and creditworthiness.
  • Options in Regulated Markets:
    Although choice is limited, regulated markets may offer programs like demand response and interruptible contracts, enabling businesses to save on costs by adjusting usage patterns.
  • Best Practices for Energy Purchasing:
    The team recommends that businesses track their energy usage patterns, communicate with suppliers about projected needs, and explore all available options within their market type to make informed decisions.

    • Key Insights

    • Flexibility and Risk in Deregulated Markets:
      Deregulated markets offer flexibility, allowing consumers to tailor energy purchasing to their risk management strategies. However, they also require careful selection of suppliers to avoid instability.
    • Efficiency in Regulated Markets:
      Though less flexible, regulated markets provide stability. Businesses can still optimize costs by understanding rate structures and participating in available programs that align with their operational needs.
    • Navigating Supplier Reliability:
      In deregulated markets, businesses should assess the financial health of suppliers to avoid disruptions. Regulated markets, in contrast, provide built-in stability, simplifying procurement.
    • Understanding Energy Bills for Cost Control:
      The podcast emphasizes the importance of analyzing energy bills to identify cost-saving opportunities. This approach applies to both market types, where specific cost structures may be advantageous.
    • Resourceful Use of Market Knowledge:
      Consulting third-party experts can be valuable in both market types, particularly for businesses with operations in multiple regions or regulatory environments, where understanding local dynamics is key.
    Share this story
    Energy Markets
    Risk Management
    Demand Response
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