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  #1  
Old June 10, 2007, 02:49 PM
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Shafin Shafin is offline
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Default Start of a new Era:Govt to allow private sector Energy Business.

if this one is implemented,I firmly believe we'll have excess energy rpoduction within 5-8 years

Quote:
The interim government is planning to allow private sector investors to distribute electricity at the consumer level by setting up their own power plants. The government will have no control over the prices of the power sold by the private power plants.
‘We are planning to allow private investors to set up as big power plants as they wish and sell their electricity by using the government infrastructure, for which they will have to pay us transmission cost,’ said energy and power adviser Tapan Chowdhury at a seminar on the National Energy Policy on Sunday.
At present private investors can set up independent power plants after the government invites tenders for setting up such plants at places selected by it. The Power Development Board purchases the power from IPPs and subsidiaries of the board distribute electricity to consumers at a price fixed by the government.
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Old June 10, 2007, 03:01 PM
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the summit power group, as well as the abdul monem group should be ecstatic over this ... tenacity paid off, finally.
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Old June 10, 2007, 03:05 PM
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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.

I'd be interested to read more on what sort of plan the govt follows in letting private companies deal with the power system. I know its all good measure seeing the acute crisis forecast, but it better not be like the privatisation of water in south america and phillipines.

On a side note: Good to see the prof pointing out that gas prices need to be increased immediately! [see post: http://www.banglacricket.com/alochon...18440&p=479057 ]

Last edited by ammark; June 10, 2007 at 03:15 PM..
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Old June 10, 2007, 11:47 PM
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Quote:
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.
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.
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Old June 11, 2007, 12:14 AM
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Quote:
Originally Posted by Sydney
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.
Sydney bhai, there's an article in this week's Economist on the Inflation accompanying growth in India, and their govt's response... I'm posting that in your Analysis of Growth thread, since it has more to do with Macroeconomics than with gas prices. It argues that slowing down growth is essentially what is required to curb the inflation.

http://www.banglacricket.com/alochon...200#post479200
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Old June 11, 2007, 12:40 AM
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Thanks Ammark. I have already read that article and posted some replies.
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