Getting the Power Sector out of Systemic Collapse

 

Dear Aliona,

 

It was very nice to talk to you at the encounter. Please read the following comment that I have written with regard to my comment at the working encounter. If you find it useful, please route it to the proper authorities at the IMF.

 

Regards,

 

José

 

At the working encounter of Romana, I said that I was very sad with all the problems of the electric sector - specially the incredible subsidies requirements - which can be read as system collapse. I also said that I was very happy, because of the analogy with the banking industry, of all of the opportunities it brings. As in banking, the solution is to get away from the distributor bottleneck and price controls to a prudential supervision of competitive retailers. 

 

Please read the post DR1: "No Way Out," says Segura, but the GMH says There Is Way , where I said "President Fernández need to do what Franklin Delano Roosevelt did on the systemic crisis of the Great Depression. He needs to listen to sound advice of electricity and business professionals to get a strong grasp of the systemic crisis. Underneath the systemic crisis there [are] great opportunities [to] write the first chapter of truly working power sectors, where risk management is mitigate[d] efficiently [for] all kinds of externals shocks. We have not doubt that there is a way, which will help to attract investments, decrease operating costs of businesses, create new jobs, lead to the development of the country, reverse brain drain, and most of all take the power sector out of the No Profit Zone."