So recently, my electric bill has risen by 30% this January i mean its to be expected a certain rise, use more during cold months, BUT I have had several friends and family whose electric bill has quite literally doubled and nearly tripled. It doesnt make sense. My friends, family and I have Sharp Energy. I know that during winter months they increase the prices because, and I’m just making an educated guess, people don’t like cold and will be using more electricity. But why the need to increase prices?! Especially if its an essential need??! If someone could break it down for me and explain this. If I am correct I would like to suggest a comprehensive policy that makes it so companies like Sharp Energy stop price gouge the people! With help ofcourse. Thank you!
Admittedly utility companies are evil but there are a couple things at play. Electric company produces X amt. of electric. When demand exceeds X they have to buy more on the spot mkt. from whoever has it at usually twice the price. This raises your average rate which happens in the winter or possibly hot summers. Nuclear companies charge the most when cost to produce is lowest which is the winter (demand). They charge the lowest rate in the summer when reactors are shut down and they switch to coal even though their costs are higher they produce less.
Congratulations on answering your own question.