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

The companies selling the electricity either own the power lines, or are renting their usage from the company that does.

The company that supplies you your power adds power to the system from its energy producing machines such as turbines. This energy is measured, and then an amount of power up to that amount can be used by your supplier’s customers, aka you. If they need more, they buy it from another supplier.