Ol’ FVR gimmick
EDITORIAL |
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One of the most notorious local industries is the power sector. Not only does the country have the highest cost of electricity in the world but the sector also harbors the most lopsided government contracts ever known to man.
Imagine most of the contracts entered into by the government. Such contracts carry the much criticized take or pay provision that guarantees payment to a power plant operator whether or not it renders any services.
Consumers have even been charged for undelivered fuel and electric power due to the take or pay provision in these lopsided contracts that benefit only the independent power producers (IPPs) that clinched the juicy contracts.
Calibrating the power needs of the country in relation to economic growth is in itself a science, something that would take great effort to accurately predict. This peculiar characteristic of the power industry makes it open to abuse, as it has been abused throughout time..... MORE
Source: The Daily Tribune
URL: http://www.tribuneonline.org/commentary/20120326com1.html
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