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Re: Enron
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Please help make the Manifesto better, or accept it, and propagate it!
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Manish,
There could be several answers.
Canada produces the cheapest electricity in the world because almost all of
it is produced by hydro-electric dams.
Secondly, the cost of petrol is much higher in India.
Thirdly, the many plants in the US which were build decades ago, have
already paid back their fixed cost.
>From: "Manish Gupta" <ml_gupta@hotmail.com>
>Reply-To: debate@indiapolicy.org
>To: debate@indiapolicy.org
>Subject: Re: Enron
>Date: Mon, 15 Jan 2001 07:38:28 -0800 (PST)
>
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>Please help make the Manifesto better, or accept it, and propagate it!
>---------------------------------------------------------------------
>Today while writing a check for the electricity bill, it came to my mind to
>check how much I pay for the electricity (I live in Northern Virginia,
>USA) per unit. I calculated and it came out to be approx. 7.17 cents KWH
>
>I did some research on the internet and came across this site
>"www.wattagemonitor.com" and I found out that generation and transmission
>price is 4.61 cents KWH.
>
>There is one more site "http://www.econsci.com/rates/rates.html"; giving
>info about electricity rate schedule for whole USA (Apparantly commercial
>and Industrial rate are cheaper than residential rate).
>
>Now here we are not talking about any subsidy.... and as far as I know
>Virginia Power is a profit making company....
>
>Now if I convert these prices to INR (1 USD approx = 46 INR) it comes out
>to be Rs. 3.29 and Rs. 2.12 respectively...
>
>I did a quick reasearch and found out that these prices are cheaper than
>the generation price quoted by lot of electricity boards in India...
>
>My question in this case is how come a company operating in an economy
>where average wages are very high as compared to the Indian economy is able
>to deliver power cheaper than its Indian counterpart...
>
>Lot of people'll try to give answer like if Enron is allowed to produce its
>90% of the capacity the power'd be cheaper etc etc...
>
>So does that mean that Indian consumer is paying higher than its American
>counterpart for power (even if somebody says that power is subsidized,
>money of subsidy is in turn paid by the populace in one or the other
>form)...
>
>Regards
>
>Manish
>
>
>
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>This is the National Debate on System Reform. debate@indiapolicy.org
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This is the National Debate on System Reform. debate@indiapolicy.org
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