Competitive market
Term · Environment · MLC-T-ENV-005882
1. Until recently, most consumers received generation, transmission, and distribution services from one local utility company. As a regulated monopoly, the utility was given an exclusive franchise to provide electricity to consumers in any particular community. Rates were set, and consumers had little choice but to pay that rate. In recent years, however, many states have restructured their electricity industry and are now allowing consumers to choose from among competing electricity suppliers.
2. Until recently, most consumers received generation, transmission, and distribution services from one local utility company. As a regulated monopoly, the utility was given an exclusive franchise to provide electricity to consumers in any particular community. Rates were set, and consumers had little choice but to pay that rate. In recent years, however, many states have restructured their electricity industry and are now allowing consumers to choose from among competing electricity suppliers. In these states with retail competition, sellers of electricity obtain power by contracting with various generation sources and setting their own price. Consumers in these states have the opportunity to choose their energy provider and purchase products based on the price or type of power supplied to their home or business. Some consumers are exercising this choice and switching to accredited "green power" resources. In states that have not restructured their electricity markets, consumers interested in purchasing renewable energy now have the option to participate in green pricing programs offered by their local utility.
| Identifier | MLC-T-ENV-005882 |
|---|---|
| Field | Environment |
| Subject | Social and economic factors; Sustainability and green living |
| References | Clean Energy Glossary; GPP Glossary; Green Power Markets Glossary |
Record as JSON
{
"id": "MLC-T-ENV-005882",
"term": "Competitive market",
"field": "Environment",
"term_source": "Competitive Market",
"definition": "1. Until recently, most consumers received generation, transmission, and distribution services from one local utility company. As a regulated monopoly, the utility was given an exclusive franchise to provide electricity to consumers in any particular community. Rates were set, and consumers had little choice but to pay that rate. In recent years, however, many states have restructured their electricity industry and are now allowing consumers to choose from among competing electricity suppliers.\n\n2. Until recently, most consumers received generation, transmission, and distribution services from one local utility company. As a regulated monopoly, the utility was given an exclusive franchise to provide electricity to consumers in any particular community. Rates were set, and consumers had little choice but to pay that rate. In recent years, however, many states have restructured their electricity industry and are now allowing consumers to choose from among competing electricity suppliers. In these states with retail competition, sellers of electricity obtain power by contracting with various generation sources and setting their own price. Consumers in these states have the opportunity to choose their energy provider and purchase products based on the price or type of power supplied to their home or business. Some consumers are exercising this choice and switching to accredited \"green power\" resources. In states that have not restructured their electricity markets, consumers interested in purchasing renewable energy now have the option to participate in green pricing programs offered by their local utility.",
"subject": [
"Social and economic factors",
"Sustainability and green living"
],
"references": [
"Clean Energy Glossary",
"GPP Glossary",
"Green Power Markets Glossary"
],
"url": "https://mlchart.com/terminology/environment/competitive-market/"
}
Record 5,752 of 29,894 in Environment terminology (MLC-0121). Request the full dataset.