(02-20-2021, 11:54 AM)SeldomRite Wrote:

(02-20-2021, 11:19 AM)mikesez Wrote: The companies with variable rates only advertise their lowest historical rates, and then they put it in the fine print that the rate might go up by a lot.

If a lot of people refused to pay their jacked up bills, they'll end up with liens on their houses. But the bills still won't get paid, and the variable rate power company will still go bankrupt. should be enough to make sure this stupid business model goes away for good.

The power still costs the same amount to generate, responsive pricing is based on the misguided idea that people will use less power if the price goes up during times of intense demand, thus moderating that demand. Of course it's the same reason that medical costs aren't responsive to price changes, if it's a matter of life and death (which intense cold can be) then a person will literally agree to any cost to avoid dying. This is another reason why strong regulation is a much better solution in many markets than laissez faire.