Often, the people who are in charge of electricity generation and distribution aspire to lower the cost of electric power. But they tend to find it difficult to do so (in a significant way). There are, as it turns out, two things that make it hard to reduce the cost of electricity significantly.
The first thing that makes it hard to reduce the cost of electricity significantly is the fact that the cheaper sources of electricity tend to be less friendly to the environment.
The second thing that makes it hard to reduce the cost of electricity significantly is the fact that there are vested interests in the power industry. To put it bluntly, there are people who benefit when the cost of power is high. These tend to be highly influential individuals. So a lobbyist in that group of people, upon hearing about plans to reduce the cost of electricity, only needs to go his or her Gmail (www.gmail.com) account, and proceed to log in to Gmail. He or she then sends an email or two, and for what appears to be an ‘inexplicable reason’ to the rest of us mere mortals, the plans that were in place to reduce the cost of electricity are shelved indefinitely!
Three models exist, through which a web-based electricity cost minimization course can be run.
The first model, through which a web-based electricity cost minimization course can be run, is that in which the course materials are posted in a website (as tutorials), and people interested in the course then access them there. The arrangement can be such that the interested people have to sign up (for free or at a fee), before being allowed to actually access the course materials.
The second model through which a web-based electricity cost minimization course can be run, is that in which the course materials are emailed to interested learners. This is a very simple model to implement. For a start, the person running the course can sign up for, say, Gmail. Thereafter, he or she would only be visiting the Gmail.com sign in page on a regular basis, to send the course materials to the students, as they traverse through the course.
The third model through which a web-based electricity cost minimization course can be run, is that in which the course materials are packaged as videos, and posted online where students can access them. This model is very appropriate for this time, when most people seem to be averse to the idea of reading text, but quite open to the idea of absorbing information from videos.
Strategies exist, through which the cost of electricity in the domestic setting can be cut to zero.
One strategy for cutting the cost of electricity to zero in the domestic setting is that of leveraging on solar power.
Another strategy for cutting the cost of electricity to zero in the domestic setting is that of crafting technologies through which the kinetic energy generated in ordinary domestic processes is turned into electrical energy through dynamos. This is the approach used to power cars: whether their batteries are charged using the alternators through the kinetic energy generated as they move. We can reckon that without this sort of arrangement, the cost of electricity in cars would be very high. It would, almost certainly, be higher than the cost of the general car insurance whose workings’ descriptions you can find on this post.
Yet another strategy for cutting the cost of electricity to zero in the domestic setting is that of leveraging on the power of biogas technology. Under this scheme, the biogas generated in the home (from the various forms of waste) can be converted into electricity which, in the absence of very power-intensive appliances, can be adequate for a typical home’s needs.
Several strategies can be used to make it possible for poor households to afford the cost of electricity connection.
The first strategy that can be used to make it possible for poor households to afford the cost of electricity connection is that of availing credit to the said poor households (for this particular purpose). The credit can be availed through a formal banking institution. That is where, for instance, it can become possible for poor households keen on getting connected to the national grid to, say, proceed to the www.capitalone.com login page, and proceed to apply for such a loan through a process similar to the one described in this blogpost.
The second strategy that can be used to make it possible for poor households to afford the cost of electricity connection is that of having a system where the poor households can be connected to the grid, and then allowed to pay slowly over time in small installments.
The third strategy that can be used to make it possible for poor households to afford the cost of electricity connection is that of having a system where the cost is simply subsidized. The subsidy can be from the taxes or from some other government source.
Regulators play an important role in stabilizing the cost of electricity (in terms of the tariffs paid by consumers of electrical energy).
Firstly, where the regulators are working in the right way, they help avoid the formation of cartels in the energy sector: those being cartels that can manipulate and eventually wreck havoc on electricity tariffs.
Secondly, where the regulators are working in the right way, they help in the fight against monopolies in the energy sector: keeping in mind the fact that monopolies tend to be inefficient, resulting in high costs.
Thirdly, where the regulators are working in the right way, they tend to ensure that all players in the energy sector play by the rules, which ensures that no players have undue advantage over others. The end beneficiaries of all this are the end users of electricity.
These matters are explored further in energy economics books. You can buy such books (in e-book format) from places like Barnes and Noble and Amazon. Before being able to shop on such sites, you will probably need to sign up. And to sign up with the sites, you may need to, say, create Gmail account at www.gmail.com – as an email address generally has to be supplied during the sign ups.
Lowering the cost of electricity at the national level can help the nation/state in question to enhance its competitiveness as an investment destination. And as we come to learn, there are indeed several viable strategies through which such electricity cost reduction can be achieved.
The first viable strategy through which the said cost reduction can be achieved is that of opting for more cost-effective electricity generation methods: like, say, switching from diesel generators to geothermal sources where possible.
The second viable strategy through which the said cost reduction can be achieved is that of introducing competition in this particular industry.
The third viable strategy through which the said cost reduction can be achieved is that of getting rid of inefficiencies in the electricity distribution company. One way of reducing such inefficiencies is what we looked at in our last post: namely, opting to be sending bills through email, as opposed to the postal system. After all, in today’s world, very few people are unable to go through, say, Gmail sign in formalities. And for those, there are resources like this blog to help them. In simpler terms, there is no reason to continue wasting money sending bills via the postal system, when the same could be send for free through email.
We are of the view that electricity distribution companies should start sending bills through email. There are several reasons to back that argument.
For one, if electricity distribution companies started sending bills through email, they’d save a lot of money in terms of postage fees. The money spend per person may seem small, but for the whole nation, the figure is astronomical.
Secondly if electricity distribution companies started sending bills through email, they’d save a lot of money that they’d otherwise have spent on printing paper.
Thirdly, if electricity distribution companies started sending bills through email, they’d be doing the environment a huge favor.
Of course, we appreciate that not everybody uses email. But we are of the opinion that getting everybody to start using email is not hard. Sites like gmailcomlogin.biz have all the instructions people need to get started with email, and resources like the Gmail sign up page allow for free accounts to be created. And then again, we are living in an age where almost everybody uses emails and there is really no reason for the electricity companies to continue sending bills through the postal system unless there are some vested interests or something else that we don’t quite understand about the whole venture.
College students tend to misuse electricity in their hostels. And thanks to this, their colleges often end up having to pay huge sums of money, in terms of electricity bills. Against that background, a question comes up, as to how college students can be made to appreciate the cost of electricity.
As it turns out, the first way in which college students can be made to appreciate the cost of electricity would be by installing meters in their hostels: so that they are charged directly for the electricity they consume.
The second way in which college students can be made to appreciate the cost of electricity would be by having that cost of electricity included as one of the items in their college fees bills. This way, they still get to pay for electricity, even if personal meters are not installed in their hostels.
Of course, these measures may come across as punitive, especially considering the modest means of most students, whose only reliable source of money is the government, through my ed account loans which the students normally apply for each year at www.fafsa.gov. Still, if it is the only thing that can work in terms of getting the students to appreciate the cost of electricity, it can be done.
There are several models that are viable for reading electricity meters and for distributing electricity bills.
One viable model for reading electricity meters would be the one in which human labor is used: so that meter readers are sent out to go around reading the meters. This is the traditional approach, and while it has its advantages, it is inefficient in terms of cost, and many power companies are doing away with it.
The other viable model for reading electricity meters would be the one in which satellite technology is used to obtain the readings, on whose basis then electricity bills are calculated.
Turning to the distribution of the electricity bills, the first model that can be used is that in which the bills are distributed through the postal system. This is the traditional way of doing things.
The other viable model for distribution of electricity bills is the one in which the bills are distributed using the Internet. If, for instance, a given electricity user has a Yahoo Mail (www.yahoomail.com) account, set up as per the instructions given in this post, it should be possible for the electricity company to sent him or her bills through the email, so that no printing and postage costs are incurred.
There are several approaches through which developing nations are lowering the cost of electricity for their citizens.
The first of those approaches through which the developing nations are lowering the cost of electricity for their citizens is the approach of opting to import electricity. This works well in nations whose power grids have deficits, and whose neighbors happen to have power surpluses they can import. And as more power comes into the grids, costs tend to go down.
The second of those approaches through which developing nations are lowering the cost of electricity for their citizens is the approach of opting for BOT (Build, Operate and Transfer) deals.
The third approach through which the developing nations are lowering the cost of electricity for their citizens is that of liberalizing their energy sectors. That way, electricity production and distribution companies that were previously government-owned are transferred to the private sector, which manages them more efficiently. This way, they are also able to raise more capital, which is invested in power production, with more power production translating into lower costs. The end result is a situation where, for instance, you end up with the stocks of these power generation and distribution companies being sold on Etrading sites like the one known as Etrade (www.etrade.com).