Re: [OPE] Electricity problems

This misses the point.

The sharp rise in prices over the last year is because there was no
forward planning to install new nuclear facilities. These are expensive
in capital terms and the
firms benefit more from the rise in prices which occurs if capacity
falls short of demand. This is in stark contrast with France where the
electricity industry is still
state owned and has adequate capacity.

Alejandro Agafonow wrote:
>
> We can use a surcharge penalizing electricity consumption over average
> in very category we devise for classifying consumers: industrial,
> residential, etc. This is a political decision that might complement
> quasi-market.
>
> But the working of quasi-market is very different from the capitalist
> market. It seems that you keep judging the former one with the
> criteria only applicable to the last one.
>
> A. Agafonow
>
> ------------------------------------------------------------------------
> *De:* Dave Zachariah <davez@kth.se>
> *Para:* Outline on Political Economy mailing list <ope@lists.csuchico.edu>
> *Enviado:* lunes, 27 de octubre, 2008 19:40:24
> *Asunto:* Re: [OPE] Electricity problems
>
> on 2008-10-27 11:07 Alejandro Agafonow wrote:
> > But arises another problem with services particularly sensitive to
> > environmental constraints. Since consumers are going to pay lower
> > prices they are going to be willing to waste electricity, leaving
> > bulbs, computers, TV’s, etc. on!
> >
> >
> >
>
> In addition to Paul's comments, isn't this yet another reason why there
> ought to be public ownership and planning of vital infrastructure? It is
> mistake to think that market mechanisms can always solve resource
> allocation problems better than centralised information coordination and
> planning mechanisms.
>
> //Dave Z
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Received on Tue Oct 28 11:17:08 2008