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Vertically integrated government owned and operated utilities have imploded too- notably Ontario hydro failed due to costs related to their nuclear plants, and
by rhodozelia 6y ago
Vertically integrated government owned and operated utilities have imploded too- notably Ontario hydro failed due to costs related to their nuclear plants, and the rate payers had an extra line item on their bill - $10/mo? - for I don’t know how many decades to pay down the stranded debt.
I don’t think markets are the right tool for electricity generation transmission and distribution - too much coordination is required between the different functions, central planning optimizes the outcomes, and the lead times are so long on significant projects that a high $/MWh for a week in 2021 isn’t going to result in a new nuclear plant.
There are natural monopolies in distribution and maybe transmission as well.
100% regulated even if there are private players is the way.
- imtringued 6y agoThe Chinese model is pretty spot on. Just let the government own voting shares in private companies. The question isn't whether public vs private is better, it's about how to harness the best parts of both. You want the government to step in and prevent unfair and counter productive behavior and you want the private company to run the infrastructure as efficiently as it can.
- pjc50 6y agoThis would have gone a lot better if you'd said "the French model", or even the "British pre-1970s model". China is a country without a free press; it may appear effective but it's also highly corrupt.