What are the legal implications of energy market deregulation?

Energy market deregulation, also known as energy deregulation, is a process of allowing market forces to determine the cost and availability of energy instead of governmental control, such as through taxes and subsidies. In California, energy deregulation has had legal implications since 1996 when the California Legislature passed Assembly Bill 1890, which deregulated the electricity industry in the state. The main legal implications of energy market deregulation in California are the creation of a competitive energy market and the elimination of the regulated monopoly of investor-owned utilities. With deregulation, consumers are able to choose their own energy provider and are no longer limited to the services of their local utility. This means that consumers now have access to different energy sources and services, such as renewable energy and energy efficiency programs, from different providers. Consumers can also benefit from lower energy rates due to the increased competition between energy providers. The legal implications of energy market deregulation also include the enforcement of consumer protection standards. For example, California’s Public Utilities Commission have the authority to review and approve energy contracts between providers and consumers. This ensures that consumers are protected from unfair business practices such as unexpected rate changes. The Commission also enforces laws that protect consumers from unfair sales tactics. Overall, energy market deregulation has brought about several significant legal implications for the state of California. Consumers now have access to more energy services and lower rates, and the Public Utilities Commission ensures that they are protected from unfair business practices.

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What are the legal implications of energy market deregulation?

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