Why do power plant companies (power suppliers ) want us to save energy?

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I see many commercials especially now just before summer, from the power supplier, urging the customers to save power; by setting the AC temperature to “room temp” or turning off the water boiler. And I can’t understand why they would spend money on media to ask their customers to “buy less product”.

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12 Answers

Anonymous 0 Comments

Here in Eastern Canada, my monthly electricity price includes

* $0.11 / KWH cost of electricity used
* Connection fee
* $7 / month water heater rental

The first of these is power used, which fluctuates. My normal bill is around $100 CAD / month.

57% of that bill is money they get even if I use zero electricity. In essence, this is free money for them.

43% of that bill is for power used. If everyone doubles their power usage because of an air conditioning device, it doubles the amount of power they have to provide, but only increases their profit by 43%. This is a losing proposition for them as they run into additional maintenance and other problems.

Anonymous 0 Comments

It is very expensive to build new power plants, and when you aren’t able to meet the demand, customers aren’t happy. So rather than spend hundreds of millions on new generation, it’s better to stick with what already exists.