Utilities enter the Death Spiral
Electricity and water rates are set to rise sharply because so many households and business are now generating their own power and managing their own water supply. The Utility company fixed costs are not going to change however many people close their accounts and go it alone. So those costs have to be paid by a shrinking pool of consumers.
Utility executives even have a name for the nightmare scenario which more and more solar panels, or boreholes or wind turbines could create – they call it the “death spiral.”They fear solar’s rapid spread across homes and businesses, combined with the increasing efficiency of modern buildings and appliances, could slowly erode the utilities’ ability to generate profits.
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