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Residential rates are not typically subsidized, they are regulated and billed at cost plus. The only thing that can be called a subsidy is a delay in raising co

Residential rates are not typically subsidized, they are regulated and billed at cost plus. The only thing that can be called a subsidy is a delay in raising costs. When local utilities are required to supply at a fixed price and that fixed price is less then cost + fixed profit margin, then they are losing money. The remedy for this is to ask their regulators to change the fixed price to account for both the higher expected base rate and their losses during prior periods. The utility commissions which regulate them almost always grant such requests. In extreme cases, CA power crisis, this can bankrupt utilities but in simple shifts of the demand curve most utilities have great credit ratings and can borrow to cover opex during the shortfalls.

baybal2 5y ago
It is https://www.globalpetrolprices.com/Kazakhstan/electricity_prices/ https://www.globalpetrolprices.com/Kazakhstan/electricity_pr...
- dpierce9 5y ago
  There being a price difference between business and residential does not imply a subsidy. It can simply cost more to distribute electricity to businesses, the time power is supplied may be different, and the nature of what is supplied may also be different. Commonly (in the US) businesses have larger supplies, three phase power, and lines and transformers may be buried or harder to access. Midday electricity is also more expensive typically and businesses use more electricity midday (which is why it is more expensive). Further, businesses may be charged real time rates while residential rates lag spikes in price or are averaged over time. That said, Kazakhstan may subsidize their power, I don’t know.
  - baybal2 5y ago
    Kazakhstan's residential utility subsidies are 3% of country's GDP.
sudosysgen 5y ago
This is true in the US generally as well as some countries with already very low energy generation costs. For developing nations residential electricity is normally subsidized.

baybal2 5y ago

It is https://www.globalpetrolprices.com/Kazakhstan/electricity_prices/ https://www.globalpetrolprices.com/Kazakhstan/electricity_pr...

dpierce9 5y ago
There being a price difference between business and residential does not imply a subsidy. It can simply cost more to distribute electricity to businesses, the time power is supplied may be different, and the nature of what is supplied may also be different. Commonly (in the US) businesses have larger supplies, three phase power, and lines and transformers may be buried or harder to access. Midday electricity is also more expensive typically and businesses use more electricity midday (which is why it is more expensive). Further, businesses may be charged real time rates while residential rates lag spikes in price or are averaged over time. That said, Kazakhstan may subsidize their power, I don’t know.
- baybal2 5y ago
  Kazakhstan's residential utility subsidies are 3% of country's GDP.

sudosysgen 5y ago

This is true in the US generally as well as some countries with already very low energy generation costs. For developing nations residential electricity is normally subsidized.