How are there multiple electricity companies if the power comes from one line?

Question

I don’t understand how there can be multiple electricity companies if the power comes from the same power line.

What I mean is, how is the power I’m getting different from the power my neighbors are getting? It’s the same power, so how can so many different
companies charge different amounts for it?

In: Economics

Answer 1

energy deregulation.

you can buy your energy from your utility, or you can buy your energy from some company who buys it from your utility. as you note, operationally/logistically it’s all the same.

the idea was that this removes monopoly pricing power from the utility. the downside is, a lot of these retail energy companies (who owe their existence to deregulation) are shady as fuck. And can do things like, go out of business! at which point – never fear – your utility will send you a bill.