> Deregulated markets, which might be better described as “differently regulated” markets, separate these concerns. Independent power producers (generators) build and sell electricity wholesale to Retail Electric Providers (REPs), who sell to households, while utilities manage the transmission and infrastructure.
On the face of it this makes sense to me. Deregulation doesn't mean there are no regulations at all. It means we split up a monolithic entity into different parts that can each be subject to competitive forces and be regulated differently.
No, only one part is subject to competitive forces (generation). The other two, transmission and distribution, are agreed by any rational party to be a textbook case of a natural monopoly and are subject to strict regulation for that reason.
> Deregulated markets, which might be better described as “differently regulated” markets, separate these concerns. Independent power producers (generators) build and sell electricity wholesale to Retail Electric Providers (REPs), who sell to households, while utilities manage the transmission and infrastructure.
On the face of it this makes sense to me. Deregulation doesn't mean there are no regulations at all. It means we split up a monolithic entity into different parts that can each be subject to competitive forces and be regulated differently.