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Electric Deregulation-A Modern Day Wonder Or An Economic Crisis
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Posted On :
Jul-28-2011
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Article Word Count :
508
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In our today’s world we very much depend on one thing and solely one thing which is electricity.
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In our today’s world we very much depend on one thing and solely one thing which is electricity. Electricity is one the most prized inventions of all. However in late 19th century and early 20thcentury gave birth to a number of higher degree scientists, the invention of electricity is a very well done job the greatest minds of their times. These men who worked hard in order for us to have a better lives had to face a lot of social agitation.
In our modern time, electricity is crucial; we need it in every way, for house work, office, factory, entertainment – in short for everything. Whether we like it or not our world has indeed went from analogue to digital. Electrical deregulation is also the black side of this wonderful digital story. Regulation simply means a particular guideline, in a country all regulation falls under the government departments. Deregulation is evidentially the opposite of regulation. An electrical deregulation occurs in a country when the electricity is taken from the hands of government by private companies. That is to say that the supply of electricity is made by private sector not by the government.
The government usually willingly gives up this authority with a simple plan, as they lower the price of electricity making it far more affordable for the local public they also hope that in market more companies will emerge. And thus there will be some competition. Now this competition will automatically mean that there will be a substantial drop in the price of electricity, lower than what the government has initially stated. This is beneficial to all ends, the public, government and the companies. As they reduce the electricity prizes they are ensured to make some profit out of it. This also benefits the government as they are able to reach more and more people, providing with electricity.
Whereas the public enjoys as they get to pay lower rates on electricity, making them save 20% on electricity due to Electricity Deregulation. The electricity deregulation is supported by USA and England but when it is applied to third world countries it is a very accurate recipe for disaster. Disaster is such as way that in third world countries deregulation will indeed lead to chaos. As the government sector gives up the electricity to private sector, they fail to handle it and thus fail to provide many large areas with no electricity or result in massive hours of load shedding. This leads to unsatisfied public and at times there is no real competition in the market so it ultimately leads to a higher price. India is an acute example of such mess.
The wonders of electricity deregulation can only be seen in fully developed countries not in the developing ones. The main reasons that a large proportion of the global population is having electricity issues is that the managing authorities are unable to handle the pressure of the basic economic laws which govern the principles of demand and supply
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Article Source :
http://www.articleseen.com/Article_Electric Deregulation-A Modern Day Wonder Or An Economic Crisis_69637.aspx
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Author Resource :
Visit electricity deregulation, Energy Saving Devices
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Keywords :
electricity deregulation, electrical deregulation, world countries deregulation,
Category :
Home and Family
:
Home Improvement
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