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Why cheap electricity doesn't necessarily result in lower bills
Wholesale power prices continue to fall. Why aren’t commercial energy bills?
Source: www.utilitydive.com
Andy’s Insights
There's nothing in this story that probably isn't already known by utility professional, but the points made are likely unknown by the general public. The next time your utility gets complaints from the public or businesses about rates, remember to explain that a lot goes into rate setting.
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Andy, missing from Utility Dive's analysis is the fact most ratepayers are now being charged for not only electricity, but a markup on the natural gas used to generate it. For utilities, that ends up as $billions in added revenue, and it's all due to a loophole re-opened when a law banning the practice was repealed in 2005.
Pricing electricity is a complicated subject, but it all boils down to a simple, fundamental tenet: Monopoly Deregulation = Higher Prices. As predictable as the morning sun.