Re:Why districts are slow to charge market rates for water
by eru on Monday May 22, 2023 @01:02AM
(#36027651)
If you know ahead of time that you are going to use your refrigerator throughout the next 12 months _and_ you want peace of mind, perhaps you shouldn't buy spot electricity for that?
There's a futures market for that. As a retail customer, you probably wouldn't want to use it directly. But companies can offer that as a service for you, and give you a long running contract that they hedge via the futures market.
To the retail customer that looks pretty much like a regular old contract, but with lighter regulation on prices on the backend.
Btw, my comment was meant in the sense that from the point of view of the market, one individual household's electricity consumption wouldn't move prices too much. Thus it's at the margin.
There's a futures market for that. As a retail customer, you probably wouldn't want to use it directly. But companies can offer that as a service for you, and give you a long running contract that they hedge via the futures market.
To the retail customer that looks pretty much like a regular old contract, but with lighter regulation on prices on the backend.
Btw, my comment was meant in the sense that from the point of view of the market, one individual household's electricity consumption wouldn't move prices too much. Thus it's at the margin.