a. How do fluctuating "spot prices" work? I get the impression that move very quickly, but why?
b. If a power generating company, whether it be privately or publicly owned, says it can't make profit if the cost of gas or coal is at a certain level, over what time frame are they talking? Businesses can wear a temporary loss if they make enough profit over the rest of the year - who determines whether these companies are being opportunistic when complaining about a temporary loss due to a temporary spike in cost to generate?
c. There was talk about how if AMEO set a price, they would compensate companies for the loss caused. Where does that compensation money come from? And again, who determines what is reasonable compensation, as that surely involves the question of what a reasonable profit is (which raises the question in b.)
d. How do the multitude of "retailers" manage to make a difference in price to customers. I don't understand what an electricity retailer actually does, and why some should be able to offer significantly different prices to customers.
1 comment:
Keep in mind that energy is a captured market. It is like medicine. Everyone needs it so companies can easily exploit that need. You raise questions that puzzle all of us. They don't want us to understand, possibly because we might then realise we are being ripped off.
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