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by vegardx
696 days ago
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There's a lower bound to how cheap electricity can be, the infrastructure to distribute it isn't free. Every country price this differently, but one way to solve this is to split the cost per kWh in use and transport, which is common in Europe. In Norway we have a model like that, and it effectively sets a lower boundary of (depending a little on the region) around 0.50NOK/kWh, around 0.05$/kWh. The price for electricity quite often go into the negative during summer, but you still end up paying for the distribution. |
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However it's not clear that the appropriate way to pay for that is usage based: looking at domestic supply for example it's roughly the same cost per house to connect to the grid, so it doesn't really make sense to pay more if you have more usage.
I'm not sure what alternative models look like for this and I'm not sure they are better or worse. But there probably is room for innovation on billing this part.