miércoles, febrero 24, 2016

We Need Demand Elasticity

Say fuel oil increase from $90 to $100 per Barril. 11% increase. What could one expect.

The problem with deregulation is that fuel prices are amplified into electricity prices. Expect more than 11% increase in electricity prices. Sometimes much more.

The problem with regulation is that fuel clauses transfer fuel prices. Expect an 11% increase.

EWPC mitigates fuel prices by introducing demand elasticity to the industry. Expect less than 11% increase. Sometimes much less.

So the message is "we need demand elasticity in the power industry."

As simple as that.