Yep, you are correct -- this is a form of subsidies. Other countries do this (or used to do this) with things like long distance and local telephone charges. Hi

Yep, you are correct -- this is a form of subsidies. Other countries do this (or used to do this) with things like long distance and local telephone charges. Higher income regions (although this is not based on income but on region) would pay more, but remote places will pay almost zero. "... PG&E, Southern California Edison and San Diego Gas & Electric filed a joint proposal with the state Public Utilities Commission seeking to add a fixed monthly charge for services, based on household income levels. This fixed-rate plan would reduce monthly bills for low-income customers and if electricity usage is controlled, bills would also be lowered. It would cost as little as $15 a month for low-income households and up to $85 more per month for households making more than $180,000 a year. ..."