Regulated market

Regulated market

Image Courtesy: Xyntech Solutions

a designated franchised service area, where a vertically integrated utility regulated by a utility commission controls the generation and delivery of electricity to its customers.

Pros

Have historically resulted in stable pricing and long-term operational certainty.

Cons

They are a monopoly that limits customer choice.

Real Talk

Regulated electricity markets are a vestige of the traditional "centralized" system. The introduction of DER and need for third-party investment necessitate a revised business model. Deregulation, decoupling, CCAs, FITs, etc. are steps in the right direction. In a fully "decentralized" consumers may not even need the grid.

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