You raise your prices, I should lower my payments
June 30th, 2008, 1:29 pm · Post a Comment · posted by kylew
I composed to following letter to send out with my bills this month:
Citing double-digit increases in the cost of living, I am asking you to accept a decrease in my bill payments to cover a shortfall in 2008 revenues.
If the request is approved, you will see a decrease of 11.3 percent, lowering the cost of my bills from an average of $100 to $89.70.
I make no profit on the lower cost of my bills. I am asking only to make up the difference in the cost of living.
The increase in the cost of living that we are experiencing is unprecedented. I don’t like decreasing my payments, especially at this difficult time. But just like the rising cost of gasoline, the cost of living continues to climb.
If the request is approved, I will continue to have one of the highest percentages of on-time bill payments in the state.
— Kyle Wright
No, I’m not really sending that letter out. In fact, it’s not even my letter. It’s a slightly rephrased version of the press release a local power company recently released announcing it will ask the state to allow a rate increase.
I don’t mean to pick on this company.
In fact, give them credit for being forthcoming about their intentions. Who knows how many companies recently have raised prices to gain extra profits without any public notice.
I also heard a recent speech by an informed person who has no connection to the power companies who said power companies could start going out of business soon if current regulations do not change. Given the choice between paying a higher bill or having no power at all, I’ll gladly choose the latter.
The real point: Businesses can raise prices and justify the action by saying they need to maintain revenues.
Why can’t consumers do the reverse? What can we do to protect ourselves? Tell me your thoughts by positing a comment here.
