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Power suppliers and you

Miss Chicken

Little three legged cat with attitude
Admiral
After reading this

ONE of Australia's richest companies and the State Government will continue to enjoy cheap power while Tassie's battlers pay full price.
Premier Lara Giddings said yesterday opening the state's electricity market to competition like that enjoyed by customers interstate was not on the Government's agenda.
"Our residential customers are protected from competition from interstate because we are not convinced at this point that that would be to the benefit of residential customers," she said.


and



In Victoria for example, people can choose from 500 electricity plans from 22 different suppliers.


SOURCE



I was wondering how many power suppliers people here on Trekbbs can choose from? Does anyone else live somewhere where one company has a monopoly?
 
To be honest, it never even crossed my mind that people might have a choice of where their power comes from. That said, I'm fine with the service I get. I've never had a problem with it.
 
I'm happy with our power company (OPPD). I've never had any major problems with them - they always give great service and reasonable rates.

Plus, when we had a devastating storm a few years ago that knocked out power for days, they did the best they could to get back up and running (as they always do whenever there's outages). I give them all the props. I would not want competition here.
 
Does anyone else live somewhere where one company has a monopoly?

Yup, and it couldn't be better for this province IMO. Manitoba Hydro is a Crown Corporation of the province and due to the abundance of hydro dams, our electric rates are among the lowest on the continent. We export a lot to the US mostly which allows us to keep the rates low.

Though, because it's a crown corp, the government sometimes can't resist the urge to dip their fingers into the cookie jar. Thus, we end up with Hydro being forced into stupid situations like spending hundreds of millions of wasted dollars building a power line from the east side of the province to the west side and back again just so the government can push for their pet project of a relatively useless UNESCO designation for a particular forest. Don't know what makes that forest more important than the other forests they'll have to cut down for the longer power line. :rolleyes:
 
I'd love to have a choice in suppliers. We have a monopoly power supplier where we live, the rates are not reasonable, the costs are always going up, even when I slash bigtime to save energy, and they're generally inflexible with payment options. I will give them credit when it comes to power outages. In the event of a storm that knocks the power out, they tend to get it restored fairly quickly.
 
In every place I've lived, there's always been only one option for power. The quality of service & cost have varied from place to place, but right now I'm pretty happy with our provider.

To be honest, I'm a bit confused as to how you *can* have more than one power provider, since most companies I'm familiar with are responsible for upkeep of the lines and power stations.
 
To be honest, I'm a bit confused as to how you *can* have more than one power provider, since most companies I'm familiar with are responsible for upkeep of the lines and power stations.

Yeah, I'm not sure I get it either. How exactly does it work?
 
Where I live, the Los Angeles Department of Water and Power has a monopoly on providing electric power, but I don’t have any complaints. The rates are reasonable and the standard of service is high. The longest we’ve ever had to go without power was for about nine hours following the big ’71 earthquake. And that one was a whopper.

To be honest, I'm a bit confused as to how you *can* have more than one power provider, since most companies I'm familiar with are responsible for upkeep of the lines and power stations.

Yeah, I'm not sure I get it either. How exactly does it work?
Yeah, just how does that work? I mean, it all comes in over the same wires, right?
 
I gather it works like this

So how does it work? When you sign up with an electricity supplier, you will be choosing who GENERATES or supplies your electricity, but it will still get DELIVERED through the same wires, pipes and poles and by the same utility company that you have now. You will also receive the same bill and pay it the same way as you do now.
There are no interfereces to your service, only savings. But how can this be???
Same electric, same delivery, same service. “They deliver the electric…we supply the savings” is the slogan for the top ranked electric supplier, North American Power.
When a state deregulates, its local utility company no longer makes a profit off of the supply portion of the electricity bills. This simply means that the utility company will not mind if you sign up with a third party supplier. Since they do not make profit off of the supply, why then would they care if you switched? The utility companies still make money on the delivery portion so it is perfectly ok with them to choose a supplier. In fact in many deregulated states such as Pennsylvania, Maryland, Connecticut, New York ect, the local electric companies urge their customers to switch to a better priced supplier.

From here
 
Water services and electricity should be government run.

What would be the benefit compared to the current setup (I'm honestly curious)?

Water services and electricity almost inevitably become natural monopolies:

A natural monopoly arises where the largest supplier in an industry, often the first supplier in a market, has an overwhelming cost advantage over other actual and potential competitors. This tends to be the case in industries where capital costs predominate, creating economies of scale that are large in relation to the size of the market, and hence high barriers to entry; examples include public utilities such as water services and electricity. It is very expensive to build transmission networks (water/gas pipelines, electricity and telephone lines); therefore, it is unlikely that a potential competitor would be willing to make the capital investment needed to even enter the monopolist's market.
http://en.wikipedia.org/wiki/Natural_monopoly

Natural monopolies should be handled by the government (or, at the very least, strictly regulated by the government). Otherwise, you're leaving people open to price gauging.

I'm sure most people have heard of Enron, but many people aren't aware of what they were actually doing. California deregulated their energy market, and private companies (particularly Enron) were able to create an artificial energy shortage (by producing less energy and selling much of the energy outside of California). The result was that Enron was able to charge up to 20x normal peak energy prices, and rolling blackouts were the norm.
 
The only option here is Hydro Ottawa, which is owned by the City of Ottawa. I have no real complaints.
 
We really only have one choice here, and it's one of the Australian suppliers whose prices are going to increase by over 40% in the next few years (to deal with "infrastructure costs" or some such bullshit). In the quarter before last we actually used less power than the previous quarter, yet our bill almost doubled.

I'd very much like to have a choice, but there isn't one. Oh, joy.
 
The only option here is Hydro Ottawa, which is owned by the City of Ottawa. I have no real complaints.

Do they generate their own power, or are they just a transmission company?

We really only have one choice here, and it's one of the Australian suppliers whose prices are going to increase by over 40% in the next few years (to deal with "infrastructure costs" or some such bullshit). In the quarter before last we actually used less power than the previous quarter, yet our bill almost doubled.

I'd very much like to have a choice, but there isn't one. Oh, joy.

I assume that it's a private company and not a Crown Corp? Not that it matters all that much, I suspect that MB Hydro will have to (either by their hand or the Public Utilities Board) raise rates to pay for the multi-hundred million dollar extra-long line the NDP wants them to build. :rolleyes:
 
I assume that it's a private company and not a Crown Corp?
Nope, government owned. Well, sort of; the monumentally incompetent excuse for a government we have in this state has been selling off electricity "assets" in recent times - and true to form, spectacularly screwing up said sale. It's all rather messy at this point.
 
We have a monopoly power supplier where we live, the rates are not reasonable, the costs are always going up, even when I slash bigtime to save energy.

Cause and effect.

If customers use less energy, the power supplier will have reduced profits.

No corporation would find that acceptable, because the shareholders would lose confidence in the company.

They'd be forced to increase rates to get their profits back up to what they were.
 
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