We don’t really: that story you heard from a few years ago was the only company that billed like that. The customers made a bet that the pricing averages through the day (lower at night, higher cost during the day) would average out in their favor over fixed-cost billing, and frankly, it did right up until it didn’t.
They took a risk and got bit by, frankly, not understanding how the system works and basically ate the spikes.
Everyone else paid $0.09/kwh or so during that whole period, and the electric providers ate the cost because when you’re averaging out spikes across millions of kwh, it won’t lead to bankruptcy.
They took a risk and got bit by, frankly, not understanding how the system works and basically ate the spikes.
It’s the exact same idea as insurance. You don’t buy insurance because you think you’ll take the insurance company for a ride, you buy insurance to even out your costs. If someone hits you, you don’t need to fork out tens of thousands of dollars for medical bills and repairs, but you will fork that out over time instead with more manageable payments.
If you don’t want to see scary bills, then pay a little higher average prices so you end up with a consistent bill.
We don’t really: that story you heard from a few years ago was the only company that billed like that. The customers made a bet that the pricing averages through the day (lower at night, higher cost during the day) would average out in their favor over fixed-cost billing, and frankly, it did right up until it didn’t.
They took a risk and got bit by, frankly, not understanding how the system works and basically ate the spikes.
Everyone else paid $0.09/kwh or so during that whole period, and the electric providers ate the cost because when you’re averaging out spikes across millions of kwh, it won’t lead to bankruptcy.
It’s the exact same idea as insurance. You don’t buy insurance because you think you’ll take the insurance company for a ride, you buy insurance to even out your costs. If someone hits you, you don’t need to fork out tens of thousands of dollars for medical bills and repairs, but you will fork that out over time instead with more manageable payments.
If you don’t want to see scary bills, then pay a little higher average prices so you end up with a consistent bill.