Because that nearby neighborhood already has enough power being generated to meet its demand. You can't just send the power somewhere without either increasing demand or reducing other suppliers.
This would be the case, what's wrong with this? It's better than paying people to take your electricity and isn't this how business works? I don't see why they shouldn't be able to increase supply (And hence reduce other suppliers) just because it would ruin the profit margins of others. Unless there's something I'm missing here or not following correctly.