OT: Electricity generation: "Net Billing" arrangements

Iain McFadyen mcfadyenusa at yahoo.com
Mon Mar 21 21:17:02 CDT 2011


May I impose on the Tacos list for a moment? Off Topic question:

Is anyone familiar with the arrangements by which an electricity utility will 
buy electricity from an independent source, using a "Net Billing" arrangement?

Net Billing is where the user has to purchase electricity (if necessary) at the 
supplier's RETAIL rate, but the supplier buys electricity from the independent 
source at the WHOLESALE rate.

{This differs from a "NET METERING" arrangement, where the net amount of 
electricity supplied is billed at the wholesale or retail rates.}

In Jamaica, we pay J$24, (around 27 US cents) per kWh. How much are the utility 
likely to pay me if I generate and deliver one kWh to them? Is the rate a 
sizeable proportion of the J$24, or a tiny fraction?


Thanks for any feedback. I'll gladly take further discussion off-list.

Iain    KI4HLV/6Y5



      


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