There is no "pay $25/month for unlimited electricity" option. And if there was, everyone would use that and all metered options would go broke overnight. Followed fairly shortly by the company offering unlimited flat-rate deals.
Which is what TFA describes, and is why there is no unlimited flat-rate deal for utilities. But that's a mature market that is not relying on growth for valuations, and isn't appealing to VCs trained on net/mobile/crypto bubbles.
I don’t know about you but where I live the electricity companies definitely offer a “flat rate” for electricity.
But those contracts are so much more expensive that virtually no one gets them.
Where do you live that you can get a flat rate for unlimited electricity? I've never heard of this (I live in Greece).
It existed when I lived in Pennsylvania, but it always had a “if you exceed this threshold consistently we will move you to a metered plan” conditional. More a way to plan your budget than truly unlimited.
Yeah, that's not unlimited. Useful data point, though. Potentially a solution for the AI companies?
Dunno if it counts because it's not unlimited usage for a flat rate, but in the Netherlands a lot of utilities like water, gas and electricity are billed at the same flat rate every month, then once a year they do a calculation and you get money back (or have to pay more if your usage was higher) based on actual usage.
I can't see any situation where true unlimited usage for a flat rate, even a wildly expensive and uneconomical one, would make any sense because as often happens you'd basically be incentivizing people to waste as much gas, electricity and water as they possibly can to "get their money's worth" or whatever, and we should be encouraging the exact opposite for those 3 things.
Same in the UK, it's mostly to spread out the seasonal cost.
Although here, if people get into debt they can be forced onto pre-payment meters where that's not an option, and the unit price is also higher. There's a lot of controversy about this.
I agree with you, that's why I can't believe it exists anywhere. What you mention is basically to reduce the costs of counting, and is still usage-based metering, just with a reasonable guess to make payment more frequent.
Power in Greece works the same way, except you (are supposed to) get the guess one month and the count the next (and pay the difference). In practice, they count less often than that.
> What you mention is basically to reduce the costs of counting, and is still usage-based metering, just with a reasonable guess to make payment more frequent.
That's not the motive where I live. There's basically 2 reasons: (1) customers (esp. those, often less well off, that resort to “money earned, money spent”) like the predictability of it; and (2) depending on the season spending changes significantly (heating, cooling), whereas salaries don't.
Usually the corrective amount is also paid out over a period of months if it exceeds X% of one month's spend.
Here in Norway, especially 10-20 years ago but still not uncommon today, you will find flats for rent with electricity included in the monthly price. Student housing especially.
We own an old 170 sq.m. semi-detached house, and the electricity bill for June was 20 euros. That's with all heating & hot water coming from electricity (heat pumps) and owning an EV that we charge at home.
That's the same for the UK but ultimately the cost is absorbed by someone, just not the tenant.
I work in heavy industrial manufacturing and we have flat rate contracts. In fact, we MUST use a minimum amount or we get billed a penalty.
In manufacturing, everything is about consistency.
Interesting. Is there an upper limit too?