Monday, February 12, 2007

What is wrong with the power picture?

An energy company posts profits of multi billions of dollars. This same energy company goes to the E.U.B asks for an increase in consumer rates and gets it. This increase covers a cost of generation not recovered at some point.

In another scenario the same Energy company under a similar circumstance asks the EUB for an increase and, the EUB says no; a cut in rates is in order.

The EUB explain to me the rate increase didn’t effect consumers as the money came from the tax general revenues by way of a rebate on consumer power bills.

As I see it there is an agreement in place with the power companies which guarantees them a profit margin.

I would love to own a business where the Government guarantees me a profit margin.
John Clark
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