Energy billings: fixed and/or variable?
Traditionally, the variable portion of the electricity bill (kWh) was the dominant one in terms of cost in the total paid by consumers.
With the intensive switch to renewable sources in developed countries, it was found that the most important cost becomes the fixed cost (kW).
The explanation is simple. The kW is what determines investments in the electricity sector chain, which is capital intensive. The kWh has always been closely linked to fuel (e.g. coal, oil, gas).
In this new environment, the natural tendency will be to evolve the way energy bills are charged. The limit will be a fixed cost, per kW demanded – much fairer, by the way.
California (USA) is taking the lead and changing the charge. Some important electric utilities will start on this line!
New Times. New challenges. New opportunities!
