AlexBailey
Kinky Tomgirl
- Joined
- Sep 12, 2019
- Posts
- 10,744
What would a competitive electrical utility grid look like? How would it work?
Electrical utility distribution companies have a monopoly in their service areas. The electricity is billed in kilowatthours delivered along their miles of wire and equipment to their customers' meters.
The distribution companies can deliver electricity from any source on their network, whether it is generated in their own facilities or by third party providers. It's logistically simple to allow customers to contract with individual or cooperative groups of power generators for negotiated prices. For example, customers can often contract to buy from renewable sources, or to prevent their payments from going to a source they do not support, such as coal or nuclear energy. It's a virtual market place, and once the power is put out on the grid it is like different sources of water filling the same tank -- all of the energy, whatever the source, is delivered over the same power lines.
The generation can be competitive, but the distribution is common. How could there be competitive distribution? It would not work to have different companies running their own separate lines through the same neighborhoods.
The distribution system has a monopoly and a lot of influence over what sources can connect to their grid. Unregulated, they have a strangle hold over providers and customers, and can set their prices however they decide. Corporations have a responsibility to shareholders to maximize profits. Without oversight there is no protection for customers nor equity for providers.
Who makes the rules? Who enforces safety protocols? Who determines pricing?
Can it be done without government intervention?
Electrical utility distribution companies have a monopoly in their service areas. The electricity is billed in kilowatthours delivered along their miles of wire and equipment to their customers' meters.
The distribution companies can deliver electricity from any source on their network, whether it is generated in their own facilities or by third party providers. It's logistically simple to allow customers to contract with individual or cooperative groups of power generators for negotiated prices. For example, customers can often contract to buy from renewable sources, or to prevent their payments from going to a source they do not support, such as coal or nuclear energy. It's a virtual market place, and once the power is put out on the grid it is like different sources of water filling the same tank -- all of the energy, whatever the source, is delivered over the same power lines.
The generation can be competitive, but the distribution is common. How could there be competitive distribution? It would not work to have different companies running their own separate lines through the same neighborhoods.
The distribution system has a monopoly and a lot of influence over what sources can connect to their grid. Unregulated, they have a strangle hold over providers and customers, and can set their prices however they decide. Corporations have a responsibility to shareholders to maximize profits. Without oversight there is no protection for customers nor equity for providers.
Who makes the rules? Who enforces safety protocols? Who determines pricing?
Can it be done without government intervention?
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