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I live in Sweden and my electricity bill would be cheaper in Germany. Why? Because in Germany, base fees are so low. 5ct per kWh doesn't help you when you pay 2

• rad_gruchalski 3y ago
  Hence I always simply chuckle when people say „the electricity is so cheap as never, 0.03€/kWh”. Yeah, to manufacture. No end customer ever sees that price.
  • Gibbon1 3y ago
    Same thing with water. For residential. Most of the cost is the capital costs of the distribution network. You'll always pay way more than the water district pays. Example. A friend lives in a tiny water district. Used to not be metered. Then they installed meters and usage went down. They had to increase the rates to make up the difference and people were really mad. And usage went down even more. It was kinda brain dead because their water comes from a huge spring so it's free as in beer.
• Gibbon1 3y ago
  I'm a bit suspicious in the US that rates are higher where per capital consumption is lower. And probably also depends on max vs average usage. In practice capital costs of both generation facilities and distribution are being rolled into the rate part of peoples bills. Consider California is using probably 25GW today. But has 50GW of capacity which has to be paid for whether it's operating or not. Also uses half as much per capita as other states. Stands to reason capital costs will be a higher proportion of the bill. A bet I'd make is as people switch to heat pumps and electric cars consumption will go up and maybe rates will drop.