No More Utility Monopolies in Pennsylvania

By Jerry Dyess

Corporate monopolies can be a big problem for those who run small businesses and just for personal lives, too. If a company can control someone just by implementing common changing, or inventing new policies that consumers then have no choice but to put up with, consumers simply lose out. By contrast, competition encourages fair, balanced practices, something monopolies just won't do.

Utility monopolies are a major problem in many states today but in'96, Pennsylvania took a huge step to curve this imbalance. The state's electricity market became deregulated, bringing more competition and service oriented electric providers into all regions.

It was soon recognized elsewhere that electricity deregulation was a positive development for consumers, and so, the FCC, the Federal Communications Commission, issued orders to include the local telephone market in deregulation as well. Natural gas customers benefited from deregulation as of November 1,'99. Then, consumers began to have their free choice of utilities as well.

For each utility category in Pennsylvania, consumers get approximately 10 companies choose from, to provide their services. All service providers make low rates a priority, and this is probably the most important benefit they give to consumers. Service is a close second, such that customers are assured outages are going to be taking care of as quickly as possible. Customers' good ratings and referrals then increase companies' chances for more business.

Although utility companies can offer incentives to attract customers when there is competition, and they can provide industry knowledge that's been updated, watch out for "free gift" perks. These aren't necessarily bad, but remember that nothing is really free. Before you sign up for any agreement with a provider, read the fine print and make sure you understand it.

If you do ever feel that you've been scammed, or if you feel that you've been "crammed," where you're charged additional charges without your consent or knowledge, make sure you contact the Office of Consumer Advocate. This office was set up by the Pennsylvania General assembly in'76, and gives consumers the leverage to demand fair and just service from those who provide utilities.

The Pennsylvania Public Utility Commission stands for balance between the needs of the consumers and utilities to ensure safe and reliable service. With the public in mind, they also seek to further economic development by educating the public on making good, sound choices when choosing utility companies.

Monopolies can certainly be unjustified and predatory in their procedures and practices. When monopolies exist, consumers' complaints can often fall on deaf ears because there is no reason to listen. After all, most consumers in this situation have no recourse. Pennsylvania had the forethought to make changes when they saw the state was heading in that direction, and made the decision instead to give consumers a choice. What that means is that today, customers and utility companies, as well as the Public Utility Commission, work together to provide the best service at the most affordable cost possible. - 29939

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