KOMPRESSOR
Contributor
gcbryan:If electricity turned expensive it was because you were paying below market rates. The only way that you can do that is for your government to subsidize those rates and the only way that they can do that is by using your tax dollars. Eventually they run out of money when they have to increase your tax rates to the point where your economy can no longer stand it.
One ecological advantage to being hooked up to the EU power grid is that less power plants have to be built. If your country can no longer supply enough power for itself then it can either build a new power plant or import power from a country with excess capacity. Using power plants more efficiently ultimately results in lower market prices and results in less power plants being built.
What is market price in a limited market if the power plants are in the hands of the country's citizens ( = the state), instead of private enterprises? Our electricity prices weren't subsidiced. They were regulated by the state. And if you are worried, we are not running out of money. We are putting away billions of dollars every year for future generations.
Our electricity production has been (traditionally) from hydro-electric power plants, which needs huge water bassins to be filled in the summer since there's no filling in the winter because of the cold. And since our (private) consumption for heating is mainly in the winter, we are depentent on the bassins to be filled when the cold starts. Now a lot of power is produced before the cold starts, mainly for exporting electric power to the EU. -And the bassins are very often empty BEFORE the winter is over, creating a need to import power from the EU.
Anyway, our "cheap" and "clean" electric power didn't affect the prices in the EU, but the opening of the power market quadrupled our prices in a few years.