No system is perfect, but for households I would prefer to see a tiered rate where the first x units of energy (low usage) is relatively cheap, then y (moderate usage) is more moderately priced and z (high usage) is expensive. Exceptions made for those whose high usage is essential due to medical conditions.
I don't want to be paying for Sue down the road's hot tub parties. Let Sue pay for those. There are plenty who are sensible with the energy use and plenty others who aren't because "we can afford it".