So going though my office and doing spring cleaning I found in my files an electric bill and cable bill from 2007, some seven years ago.
Electricity rate per kWh then was almost 16 cents per kWh. Now we’re scraping 18 cents per kWh or an increase of 11% overall. Which breaks down to about 1.5% increase per year. Though this last pass they got an increase of 21% in the rate per kWh for electricity.
Now cable is more interesting. Right now I pay $156 per month for phone, data and TV including HBO. I found a bill from April of 2007 and on that bill I had the following services:
Cox Limited Basic
Cox Expanded Service
Service Assurance Plan
And rented the digital receiver. Total cost $67.75
So let’s for sake of simplicity take the $156 a month I spend now and subtract the $14 for telephone service. That comes out to $142.
$67.75 versus $142.00. The price of service has shot up 200% or more. But think about this – the cost for electricity has only increase 11% and granted, the costs for programming have gone through the roof but not to the 200% margin. In essence, Cox Communications is screwing all of us.
And it’s not just Cox – look at Verizon bills, FIOS has now been around long enough to do comparisons. I’m pretty sure it’s double digit or more percentages there too.
Just as Susan Crawford, who I think should be the FCC chairwoman said, we’re a Captive Audience and they’ll charge all the market will bear.