Question

One of the promises made by the government in 1994 was "free electricity." Since 2001 the government has provided a small amount, 50 kilowatt hours per month, free to each household. Beyond that, a household must pay for the electricity that it uses. Many people would prefer a flat"‘rate pricing system, where each household throughout greater Johannesburg would pay the same rate each month. This would mean that ________.
A) all households in Johannesburg would be able to have all the electricity that they need
B) Eskom, the electric company, would probably make huge profits
C) wealthy households would end up paying much more and have less electricity than they do now
D) poor households would end up paying much more for their electricity than they do now
E) there would be no incentive to keep electric usage low, and environmental issues related to the generation of electricity would worsen

Answer

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