For example, the convergence of retail competition, wholesale competition, and improved technologies should greatly expand the type and magnitude of price-responsive demand in electricity markets. Efficiency products should be promoted through directed research and subsequent market availability. Artificial efforts to mandate market penetration of efficiency schemes should be avoided. Regulatory polices that allow and encourage retail customers to respond to market prices will improve economic efficiency, discipline market power, improve reliability, and reduce the need to build new generation and transmission facilities. Policymakers should rely on a properly structured marketplace for energy decisions regarding pricing, technology deployment, energy efficiency, and selection of fuels and energy suppliers .
Market competition is a dynamic process that produces long-term benefits for the public.
Governmental policies should seek to establish and preserve the conditions necessary for efficient competition to work. Government officials at all levels should only cautiously impose new regulations on the energy chain. Moreover, efforts to address health, safety, and environmental concerns should be based on sound science and cost-effective options. Specifically, regulations should not be imposed in the hope of reaching a goal that researchers cannot demonstrate as achievable at a reasonable cost. Energy markets should be free and competitive, and utilities should be allowed to compete fairly in these markets .