Friday, October 05, 2007

Power rip off explained (somewhat)

Conversations with help lines can really be a very major help!

“The Electrical Company” pay between 4 and 6 cents per kwh for the electricity they sell you. “As a rule of thumb they double this price when talking to you on the phone because, that would be our overhead” they say.

Their buying price today is under 05 cents kwh.

That brings the conversation price of electricity up to between .08 and .12 cents per kwh.

“The Electrical Company” feel they are giving every one a break when they charge us at 10 or 11 cents per kwh.

The point here is the base rate charged on electricity to the consumer is entirely arbitrary and supported by the EUB! When is 100% profit not enough? That is when the EUB allows increases in power costs based on “lost profits” Dam, I want one of those!

The power line companies running their various power lines base the price of the transmission on the “conversation” price of electricity.

As your power price increases so does your transmission costs. Money must weigh heavily on the lines.

Running a cost plus operation is hard. They have to figure out how they can add a billion dollars profit, or more in services charges. (Thanks to Edmonton Sun- Too bad they don't archive)

John Clark
cyberclark@shaw.ca
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