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There's a pole in my backyard. It generously connects 8 houses. There is another pole a few hundred feet down the road, also connecting 8 houses.



There is also a pole closer to the substation which is carrying the power for 5000 people.

Meanwhile if four of the eight people near your house decide to disconnect from the grid because the fixed fee is too high, you still have to cover the cost of that pole with half as many people, some of whom might then decide that the higher fixed fee is too much and disconnect too, etc.




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