Here in NZ they do exactly the same. The POCO's increase the kWh charges just before the winter so it will cost you an arm and a leg to use electric heating. The standard domestic rate around Auckland is 15.1 cts / kWh. Linecharge 86 cts / day.
Less than 10 years ago it was 8.26 cts / kWh and 20 cts / day linecharge.
And the bulk is Hydro generated !
Lets not go in detail about the hughe profits being made out of all the powerusers.
The product of rotation, excitation and flux produces electricty.