E-Reg Myth: “Demand charges for small customers send better price signals and are more efficient.” Reducing demand 24/7 is expensive. Renters have little or no control over demand drivers. If you can’t respond, it’s just monopoly rents, not a price signal. #eregmyths
Demand reduction can be achieved by radically changing the way customers use energy. This is why I argue that demand-based rates should be offered to users of #BeneficialElectrification, like heat pumps, but not required for those who use legacy fossil fuels.