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▲ xyzzy123 15 hours ago

What I don't get though is that with increased household efficiency and presumably an increase in population (i.e, density which usually lowers cost), and the benefits of efficiency improvements to generation and distribution... why is household energy spending is UP, even accounting for inflation?

▲epistasis 14 hours ago | parent | next [-]

In the US, it's due to the cost of the grid, the part of the utility bill that PUCs allow utilities to charge a fixed rate of profit. So if utilities take 20% on that grid "maintenance" project, the utility drives up the price as high as possible.

This is why distributed solar is actually cheaper than utility scale solar all-in: you need less of that very very expensive grid, even if you pay 3x on the initial install costs.

▲ezequiel-garzon 15 hours ago | parent | prev [-]

My bet would be in part more A/C units.

▲xyzzy123 14 hours ago | parent [-]

Households use about 20% less electricity today than in 1985; per person kwh is also down. But household expenditure is up by 20% in real terms and cost per kwh is up by 50%

40 years of technological progress and prices went up :(

▲andyjohnson0 13 hours ago | parent [-]

In 1970 the UK domestic electricity grid and generating plants had been state owned since 1948, and was basically run by civil servants. This lasted until 1990-91 when it was all privatised by the Thatcher and Major governments (both Conservative).

Now in 2026 the main generators are EDF (French state owned), RWE (German), and Scottish Power (Spanish owned). These companies tend not to publish executive pay, but back in 2012 the CEO of EDF in the UK was being paid £1.2 million a year.

I would submit that all this has some bearing on why the prices have gone up.