Why do power companies continue to make us pay such high bills when they have made enough $$ already?
Wouldn' it make more sense if they could just give everyone a flat rate one cost every month the same amount every month, now that would be nice.
- Anonymous1 decade agoFavorite Answer
Power companies, gas companies, insurance companies, they're all the same. We are so screwed by all of them. They make millions every year while we have to struggle to buy groceries each week. Hardly seems fair to me. Remember to vote your conscious in 2008.
- 1 decade ago
First of all, energy is a commodity; it is not just the power company that selects the price.
Second, you would hate a flat price and be complaining about that. Why you ask?
1. To give you a flat price the will simply charge you the average price for the amount you likely use. (Souunds fair enough, but it wouldnt make u any better off). Then they would have to increase that amount to some degree.
Why? Because by charging a flat rate, they are incurring risk. because of energy prices go up, they will have to swallow it; so they will charge you more to offset the risk.
In addition, if they charged you a flat rate per home, they would have to charge you more because of moral hazard. If you paid a flat fee i.e. $30 per month, you would have no incentive to turn off your lights when youy leave, or to turn down the heat or up the A/C.
Try being a little more objective and looks to all side before making harsh statements.
And what is wrong with profit. Sounds like u r a socialist. Nothing to be ashamed of, but it is what you are.
- Anonymous1 decade ago
Because you are a customer.
You are aware you can buy Solar Panels for just a few hundreds of dollars and get electric energy FOR FREE from the Sun, right?
- 1 decade ago
Control and greed. Just like oil-gas companys