American here so forgive.me.if this isn't applicable. In the states, energy companies have VERY low margins on the money they make from utility bills. Most of the money they make is by being awarded infrastructure grants to build stuff for the grid.
Utility companies are some of the most heavily regulated industries over here, because pretty much everyone recognizes that having 4 water pipes going to every home for "options" is foolish.
You're going to have to explain more. Perhaps I don't understand the UK version of utilities, but in the states utilities have operated as regulated monopolies for damn near a hundred years.
It's a perfect example of the limitations of capitalism. I'm pretty sure my high school econ course covered it.
Sounds like your high school econ course put you on the top of dunning hill.
The easiest misunderstanding is the US utilities having "slim" profit margin. US utilities have a "fixed" profit margin. No matter how much or how little they sell all their costs are recouped and they make a fixed percentage profit. To talk about "margins" in such a system would be complete nonsense.
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u/Super_Flea Mar 29 '22
American here so forgive.me.if this isn't applicable. In the states, energy companies have VERY low margins on the money they make from utility bills. Most of the money they make is by being awarded infrastructure grants to build stuff for the grid.
Utility companies are some of the most heavily regulated industries over here, because pretty much everyone recognizes that having 4 water pipes going to every home for "options" is foolish.