this post was submitted on 07 Aug 2026
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At the residential level that can exist too in the USA, but its not nearly that simple here in the USA, and I doubt its entirely that simple in your country either. Electricity isn't like a tank of fuel that is drawn down and refilled. Besides maintaining the infrastructure for generation and delivery, electrical capacity at any given moment has to be built into the system, not just pure total consumption over time. So simply paying for electricity consumed doesn't capture all of those costs in the system to make that electricity consumption possible to the consumer.
Commercial/Industrial customers in the USA don't just pay for "amount consumed" but also "demand charges" which means "at any given point how much electricity will you be pulling from the grid?". Its not uncommon that the demand charges for businesses can be larger than the charges for amount of electricity consumed. Additionally, some European governments give large breaks in electricity rates to incentivize certain industries. Germany for example gives 50% discounts on electricity for chemical production, glass producers, or semiconductor producers if those companies invest in decarbonization efforts.
Many European commercial/industrial electricity consumers have variations on what I described above in addition to wholesale electricity purchases for a given period which also breaks away from your described "pay for what you use with higher rates for more consumption".
Can I ask you what country you're in (or another country that you know uses your country's same system)?