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Electricity retailing began at the end of the 19th century when the bodies who generated electricity for their own use made supply available to third parties. In the beginning, electricity was primarily used for street lighting and trams. The provision of these services was generally the responsibility of municipal authorities who either set up their own departments or contracted the services from private entrepreneurs. Residential, commercial and industrial use of electricity was confined, initially, to lighting but this changed dramatically with the development of electric motors, heaters and communication devices.
The basic principle of supply has not changed much over time. The amount of energy used by the domestic consumer, and thus the amount charged for, is measured through an electricity meter that is usually placed near the input of a home to provide easy access to the meter reader.
Customers are usually charged a monthly service fee and additional charges based on the energy (in kWh) consumed by the household or business during the month. Commercial and industrial consumers normally have more complex pricing schemes. These require meters that measure the energy usage in time intervals (such as a half hour) to impose charges based on both the amount of energy consumed and the maximum rate of consumption, i.e. the maximum demand, which is measured in kW.
The rapid growth in electric appliances in the early part of the 20th century contributed to an explosive growth in electrification around the world. The supply of electricity to homes, offices, shops, factories, farms, and mines became the responsibility of public utilitiesA public utility is a company that maintains the infrastructure for a public good. Public utilities are generally regarded in some places as natural monopolies or as specially regulated sectors. In command economies, these functions are generally performe, which were either private organisation subject to monopolyAlternate use: Monopoly (game In economics, a monopoly (from the Greek monos one + polein to sell) is defined as a market situation where there is only one provider of a product or service. Monopolies are characterized by a lack of economic competition fo regulationIn the context of government and public services regulation (as a process) is the control of something by rules, as opposed to its prohibition. In economics, it is part of the government relationship with markets, often seen as the opposite of deregulatio or public authorities owned by local, state or national bodies. In some countries a statutory or government-granted monopolyIn economics, a government-granted monopoly also known as a state monopoly or a coercive monopoly is a monopoly which is established and protected through the use of laws, regulations, or other mechanisms of government enforcement to forbid competition in was created, which was controlled by legislation (for example EskomEskom is a South African electricity public utility company. Eskom was established in 1922 as the Electricity Supply Commission (ESCOM) also known by its Afrikaans name Elektrisiteitsvoorsieningskommissie (EVKOM), by the government of South Africa in term in South AfricaSouth Africa is a republic at the southern tip of Africa. It is bordered to the north by Namibia, Botswana and Zimbabwe, to the north-east by Mozambique and Swaziland. Lesotho is contained entirely inside the borders of South Africa. South Africa is one o).
Electricity retailing in the period from approximately 1890Events January 2 Alice Sanger becomes the first female staffer for the U. White House. January 25 The United Mine Workers of America is founded. January 25 Nellie Bly completes her round-the-world journey in 72 days. March 1 Leon Bourgeois succeeds Ernest to 1990Events January January 3 Former leader of Panama Manuel Noriega surrenders to American forces. January 7 The Leaning Tower of Pisa is closed to the public due to safety concerns. January 9 Lt Gen Bazilio Olara Okello The man who led the coup aginst Dr Apo consisted of managing the connection, disconnection and billing of electricity consumers by the local monopoly supplier. In many utilities there was a marketing function which encouraged electricity usage when there was excess capacity to supply and encouraged conservation when supply was tight.