miércoles, junio 13, 2007

El Nacimiento de la Competencia en Electricidad Parte 2

Reference: El Nacimiento de la Competencia en Electricidad

Dear readers,

Michael Rothkopf is giving another insight to all of us very clear that Len's proposal should compete for one segment of the market. It is very expensive for some customers to finance the metering costs, which are still relatively high for most parts of the world. However, in the Dominican Republic (DR1) and other low power reliability countries, where many people have gensets and/or battery inverters, the feasibility of Demand Response (DR2) and spot price plans are much easier to amortize the investments.

Michael Magaletti is concerned with pricing (better yet, tinkering as explain in the post On the End-State of the Power Industry with regard to “decoupling” sales from revenues without introducing of competition) in California, which has an “unsatisfactory progress” assessment in the ABACUS report. In relation to it, one of the key contribution Nat’s article is that it is now understood how to price default service that does not undermine competition during a transition to competition.

Progress towards EWPC allows the mix of flat rate, RTP, and combinations thereof, as a transition to help generate a large worldwide mass market, which will transform system costs like they have in the telecom industry. Today poor people the world over can access cell phones - whose costs go in some cases to the service plan. This is where competing retail market innovations will play their roles.

James says that "...there is only one thing worse than the old days of the regulated utility industry...The deregulated, market-based and "competitive" industry being created today." As can be seen in the post CMU Conference Summary: The Public Needs to Know, I claim that industry restructuring went in the wrong direction - similar to other industries which are unsustainable - and that EWPC is the right sustainable approach.

Len, proper LMP (remember an earlier dialogue) is the signal. Some retailers and customers make money when they respond at a give time and place, when and where the system would otherwise attempts to get close to capacity.

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