| ▲ | derf_ 5 hours ago | |||||||||||||
> Why are more and more utility providers charge based on ‘infrastructure cost’ or ‘fixed platform fee’ instead of usage fee? Because unlike many commodities, electricity, once generated, is hard to store, yet supply must match demand in real time. You need to meet peak demand, even if normal usage is not as high. If you pay purely for usage, that might not send enough price signals to ensure that you have the necessary capacity when you need it. https://www.canarymedia.com/articles/enn/explainer-how-capac... has a more detailed overview of how markets are being structured to provide capacity, separate from actual generation. | ||||||||||||||
| ▲ | claw-el 5 hours ago | parent [-] | |||||||||||||
Hmmm, if you take a brick and mortar store, they have fixed costs to renovate and decorate the store, and they likely have capacity of the store that is not used during non-peak period as well. They charge for item sold, to cover for all costs they incurred for capacity of the store even during non-peak period as well. Is this an equivalent comparison? Don’t businesses generally roll in the fixed costs into their price and charge per unit still? | ||||||||||||||
| ||||||||||||||