gas ... the cost of production of the gas is constant, but the capacity of the gas lines is fixed. when total demand [in mcf] exceeds the ability to deliver through the lines, some user has to be cut off or flows to all users diminished. fortunately, industrial and commercial use is highest during working hours and residential during the night -- which helps to even things out. but expecting that it'll always come out even would be a fool's thought.
No. They have to have capacity to provide for demand at peak times which is underused late at night etc. so they want to even out demand and do that by having cheap prices for off peak. Ever travelled on a train?? Same thing. Oh. And no apostrophes on plurals.
It is VERY simple and basic supply vs demand. When demand is up, supply if down, prices go up. When demand is low, supply is high, prices go down. Economics at its absolute most basic. Comparing utility consumption to hard goods isn't the same thing. Totally different consumption models.
there used to be a long time ago tricksters with three cards one was a queen they shuffled these face down very quickly and you tried to follow them and would bet on what you thought was the queen
of course you never won even though you were positive you had got it well it's the same the banks do it (mortgages) insurances do it and of course the utilities bamboozle the customer and rip him off the deck is stacked everyone a winner come on folks try your luck
I think its the high demand times around tea time to the low demand times like late at night. probably costs more money at high demand times as they would have to generate more power costing more money.
Hello,
I have often wondered about how gas and electricity company's can charge different amounts at different times of the day?
I mean these company's seem to have so many different tariffs all at different prices as well.
Surely they must buy/produce gas and electricity at the same price no matter what time of day it is.
I mean, a can of beans in Tesco cost the same no matter what time you buy it.
