The power generation facility itself still has massive overhead costs regardless of how much fuel they are using at any given time.
Comment on If you save, we will charge you more
reddig33@lemmy.world 1 day agoIt’s not how all businesses work. Many businesses lower prices when there is a surplus. It’s ridiculous that energy prices would go up when they are spending less on natural gas, coal, or whatever they are using to create the power.
Honestly crap like this is just going to encourage those that can afford it to install solar panels and backup batteries to load up on cheap electricity. Then the power company is really going to throw a hissy.
Bronzebeard@lemm.ee 1 day ago
reddig33@lemmy.world 1 day ago
And? That cost is constant. It shouldn’t cause fluctuations in price.
GreyEyedGhost@lemmy.ca 1 day ago
There are fixed costs and proportional costs. Property taxes aren’t put on hold just because you aren’t running. A certain amount of maintenance will be needed whether or not you produce a watt of power. Some maintenance costs will increase the more power you produce, including fuel costs. All of these factors need to be taken into cosideration when determining how much any given watt costs to produce.
Rivalarrival@lemmy.today 1 day ago
The gas station example still has this issue. The gas station’s fixed overhead costs are passed on to the customer. Divide those overhead costs by the number of gallons sold. Reduce the number of gallons sold, and the “overhead fee” per gallon increases.