I thought the reason they were increased is so we could get the same power with reduced supply?
However a fair few power companies are reaching ridiculously high record profits, which goes against the grain of that idea.
In: 16
In order to truly get the answer for this you would need to review the company’s financial statements.
I know it’s very popular to say that they are evil and ripping everyone off, but sometimes there are actual reasons behind increased profitability.
The other thing to keep in mind that profit from an accounting standpoint isn’t necessarily what you think it is. For example businesses are able to take deductions on certain assets due to depreciation. So in that example even if a company showed a loss they didn’t necessarily lose money.
On the flip side if a business were to sell an asset like a building and record a profit on it, then they would show a profit despite the fact that regular operations haven’t changed all that much.
Latest Answers