This
landmark study concludes it was energy prices. What a load of rubbish, if it was energy costs we'd all being paying more. China is one of the cheapest countries for power and they import coal.
I collectively refer to this as
slutbagonomics. It can be seen in trading markets (e.g., S&P 500 intra-day), politics and highly regulated markets.
In Ohio they introduced competition. I believe in competition. It works; but only if you get rid of the regulated part. What happened is they continued to charge a regulated portion for the utility provider, and a separate charge for the free market supplier you chose. Initially, IIRC, the utility charge was small and reasonable.
I broke down my electric bill for the past 12 months. The supplier side is 45%, and the utility side is 55%. Unlike my gas bill where I use very little in the summer, my electric bill is high all year as I have a lot of computers on 24/7. (87% higher than my neighbors)
There is nothing explaining how the utility side is calculated. However, in trying to understand solar payback, I discovered that it is highly correlated with usage, just like the supplier side.
This meant two things:
- while knocking down my supplier side from 5.5 to 4.6 cents per KWH sounded like a big win initially, it wasn't really when I realized I'm still paying 13 cents per KWH total.
- The payback for solar is calculated using 13 cents, not 4.6 cents. This is good to know as I invest in off-grid solar.
The problem with regulated utilities is their profits go up when their expenses go up. You might say, "yeah, but they need to get approval to increase expenses?" From you or I? No. Rather, from someone who's profits go up when they approve increases in expenses, of course. Politics + capitalism combined =
Crony Capitalism, one form of slutbagonomics.
You see it in Russia under Putin. You see it in China under the CPC. You see it in the USA. You see it EVERYWHERE politicians and lawyers (often the same) roam the planet.