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Dec3-03, 12:15 PM
P: 473
Originally posted by Nereid
The sooner we get the regulations changed the better! Let's start charging 'residential' customers a fee that's closer to the marginal cost of producing the electricity they consume, and offer them choices.
No problemo. They can offer you electricity closer to the marginal cost of producing it .. AT their plant. You are free to take it somehow and deliver it where you want, the way you want, at costs you want. If it hadn't occured to you yet, then crucial function of regulation is to force development and maintenance of distribution network, that means wires to your home, your town, your area, country, and protecting you from paying insane money to get your electricity to your home.

when will biz cases that offer differentiated residential services begin to make sense?
When costs begin to relate to differentiated pricing. Already the case. To get the nines, you pay extra. What you have by default, is a free lunch, payed for by someone who needs the nines. No room for whining, be it down for a week if they like. Epic blackouts impact whole economy, thats why they get the front page.

Hmm, perhaps they need all the nines because they've never had any real choices?
Have you ever owned UPS? They need all the nines because downtime costs them money, much more than all the nines they pay for. Please name one crucial business that can run without energy in todays world.

If there were a competitive supply market, with a rich range of nines/time-of-day/etc choices, how many CFOs would start suggesting to their CEOs that they seriously consider re-engineering their processes to take advantage of the cost-saving opportunities that have just opened up? Bet we'll never find out until the possibility becomes real enough
How many CFOs today seriously consider building nuclear plant to SELL electricity instead of buying it? Who cares what it costs if its compensated? The only "CFOs" who will seriously consider re-engineering their processes are residential losers who will take advantage of the cost-saving choices to find more opportunities in whining about the choices. Perhaps also that it has damn rare major blackouts.

And, seems its not obvious to you that "nines" are not function of production of energy, but of reliable distribution of it. By competitive supply market, you are implying alternate distribution network, grid. You are welcome to build your own nationwide grid thats better, cheaper, more flexible. There are thousands of energy suppliers waiting for you.

Well, it has happened in airline reservations (when's the last time you spoke with a profitable travel agent?), banking, telecoms ( ), quite a lot of B2B commerce, ... what is unique about the energy sector?
Nothing has happened there. Planes are crashing, banks are robbed, telecoms have outages. Unique to energy sector is that every damn business stops without energy.