Eli5 How do people choose different electric companies if it’s all on the same power grid?

Question

Eli5 How do people choose different electric companies if it’s all on the same power grid?

In: 2

Answer 1

The power plant generates electricity that is fed in to the grid, and end consumers use it. That’s the practical.

Financially, the power plant sells electricity by the Kilowatt Hour to 3rd party companies in large amounts for low prices. These 3rd party companies then resell those KW/Hr to end consumers for a profit. As a customer, you are choosing between the amount of profit you are giving to a company.