How Can I Capitalize on Energy Deregulation

By Madalene Seagle


Ever since the early 1990's, the desire for energy deregulation has produced a significant potential for savvy individuals to develop additional earnings streams. A half a trillion dollar transfer in riches is taking place while energy deregulation develops. The chance originates from the joining of 3 impressive forces in enterprise: 1)The Energy Sector 2)Deregulation 3)Direct Sales

The airline industry began to deregulate in 1978 removing the limitations of federal government, price controls, route control, and lack of competitiveness, while reducing a great amount of federal bureaucracy. Even though it wasn't necessarily perfect, the airline deregulation actually has brought about the industry and healthy competition that we enjoy today. That system has reduced the industry trip cost per mile for the customer, while creating opportunities to new companies such as Virgin Air and Southwest Airlines. Almost all of us didn't get a chance to take advantage or earn income with the deregulation of the airline industry.

The telecommunications industry were deregulated in 2 important steps. AT&T's stranglehold of long distance telephone service stopped in 1984. At this time, Ma Bell was forced to sell off control in its regional businesses into the Baby Bells. In time both MCI & Sprint were in competition directly with AT&T and proved that they could indeed compete while making improvements to service & reducing pricing for the consumer. The second stage of the telecommunications sectors deregulation started in 1996, and the passing of the Telecommunications Act of 1996. This act separated the regional full control that the Baby Bells had over local phone call service. This opened up competition in the local area markets from other start ups, cable providers, and eventually VOIP companies. In the 90's, many of Direct Sales and telecommunication companies such as Excel, and LCI worked with each other to create opportunities for residual income if you positioned yourself.

A lot of states in the US have begun to change the laws in the energy market to promote competition amongst energy suppliers over the last few years. Energy Deregulation has actually split the monopolistic utility businesses by separating the manufacturing of different energy sources from how they are delivered to the consumer. This forced division creates even more competition, and lower prices. Prior to this deregulation took place, both electricity & natural gas were provided by neighborhood utilities or local monopolies, that regulated the generation of power and distribution methods for energy together.

Energy companies, using E.S.C.O's, or Energy Service Corporations, are able to provide a variety of options for service and rates. The strategy is to break up (deregulate) the creation of power and enable customers a selection as to where they purchase their power (just as they could pick their long distance phone carrier). The neighborhood utility company would still offer the power distribution, as they do today over their lines. From the perspective end user or consumer, nothing changes. There won't be any disturbance of utility services, their existing utility company still manages service and bills the consumer's account. There is a small possibility that the consumer may get a different bill from the new energy company instead of a single invoice from their current utility provider.

The merging of deregulation, direct sales, and energy has produced a significant possibility for people who truly want to transform their lives forever by joining with the right venture. Robert Kiyosaki, the internationally renowned guru on prosperity and finance, has stated that The Direct Sales profession as the "Business for the Twenty First Century". Direct Sales is just a way to distribute product straight to the end user as opposed to through a normal retail shop. This is normally achieved by using an independent consultant sales force. Worldwide revenue in Direct Sales organizations increased from about $139 billion American dollars in fiscal year 2010 to $150+ billion US dollars in fiscal year 2011. The Worldwide energy sector is estimated at nearly $6 trillion US dollars, with over 1 trillion US dollars from the United States alone. With a constantly increasingly competitive industry, the opportunities within the energy industry are plentiful. If it's renewable energy sources, breakthroughs in technology, the deregulation of energy, applications of smart grids, or energy efficiency, the chances for prosperity creation are plentiful for those people that are willing to educate themselves & take direct action with the best opportunity.

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