martes, enero 31, 2006

Electricity WPC and Commitment to Employees, Customers and Service

EnergyPulse published the artícule Utilities Can Learn from the Ritz-Carlton Commitment to Employees, Customers and Service by David Saxby, President, Measure-X, to which I made the following comment:


These are great insights for the End-State of the electricity industry, when Electricity WPC (Without Price Control) is enabled. Under Electricity WPC each retail customers will be able to select the maximum value addition from electricity from competing retailers. Vertical integration and re-regulation include hidden supply security cross-subsidies from retail customers to other customers, which lead to great value destruction.

To develop innovative business models required to compete, successful retail marketers should consider the advice from the Ritz-Carlton. The opportunity to start with a clean slate to engineers the integrated business processes will lead to large productivity improvements.

To learn more about Electricity WPC, please read the first comment to Strategic Perspectives on Utility Enterprise Solutions, and the lengthy discussion under Ferdinand E. Banks article A Few More Unfriendly Comments on Electric Deregulation, where the concept WPC was borne to replace the confusion between re-regulation and deregulation.

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