disgustingly offtopic: energy shopping

Yanni Chiu yanni-bJEeYj9oJeDQT0dZR+AlfA at public.gmane.org
Fri Jan 20 21:25:32 UTC 2006


Christopher Browne wrote:
> But this doesn't explain why it is beneficial to get an extra
> middlecritter in between you and OPG, who are probably the same people
> that were providing the power both before and after the transaction.

It isn't always beneficial. It's a *fixed* price, if the
price goes down, you don't get a break. What you're
effectively doing is investing in energy "futures", and
therefore making a bet on which direction the price is
going to go. If it goes up, you win; if it goes down, you lose.
Since energy prices have continued to rise, few have seen
a losing bet. So salespeople can continue to push the myth
that their fixed price contracts are cheaper. IMO, if you
really want to invest in energy futures, go to the financial
markets and buy them directly - then you'll really cut out
the middleman.

-- 
Yanni Chiu

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