NewsWhore
05-25-2009, 06:00 PM
In his page 2 editorial column, Diario Libre editor Adriano Miguel Tejada shares what he describes as "a reasonable opinion" from an electricity expert. The expert has told him that the intermediation margin for power distributors is at 8 US cents per kWh, which should be sufficient to cover all financing, administrative, operation, maintenance and investment in infrastructure - and even yield a profit. He comments that the expert says that the increase in the rate suggested by the World Bank, the IDB and the IMF is just to resolve the fiscal deficit of the government that is now choosing to subsidize the sector with US$700 million to keep the present state of affairs, and bearing in mind fuel prices continue at the current rates. "The increase in the electricity tariff will not eliminate the subsidy to the electricity sector, as it did not eliminate it in 2005 when the rate was raised from an average 12 US cents kWh to 20 US cents kWh," he writes. "On the contrary, in 2005 when the rate was increased, the subsidy increased from US$250 million in 2004 to US$620 million."
He added that an increase in the electricity rate will only end up passing on the inefficiency of the distributors to the paying clients, and it is very likely that the subsidy will increase as it did in 2005, as a consequence of an increase in evasion even with the current law that criminalizes electricity theft.
More... (http://www.dr1.com/index.html#7)
He added that an increase in the electricity rate will only end up passing on the inefficiency of the distributors to the paying clients, and it is very likely that the subsidy will increase as it did in 2005, as a consequence of an increase in evasion even with the current law that criminalizes electricity theft.
More... (http://www.dr1.com/index.html#7)