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Originally Posted by ammark
Not optimistic about "The government will have no control over the prices of the power sold by the private power plants" deal. There has to be some Autonomous Regulatory Authority to keep rates harmonised. In the west, most private powerplants distributing at the consumer level have a monopoly in the area that they supply. If this is the norm there's room for overcharging consumers.
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Exactly my thoughts as well Ammark.
I have no problem with private sector producing what-ever, but when it comes to a such a big every day utility commodity like gas, there has to be a provision for govt control or atleast a degree of regulation.
The backbone of the economy is the emerging middle class who needs to be protected from being the hapless victim of any such actions. A drastic price hike will have no effect on the upper class, as they already have more than enough disposable income. Similarly, lower class will be spared too, as they are yet to have any income to mention about, let alone disposable.
Govt is already having a massive fight with the biggest evil when it comes to economic growth, Inflation. Rise in gas price would be another cause for a spiral effect and it would only add the woes.
Saying so, private sector is always welcome to give a helping hand in the ever worsening energy sector in our country. We do need them badly.