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Is the health of the electric grid helped by a focus on "competition" among electricity retailers?

The brainless should not be in banking. — Willem Buitler
by Migeru (migeru at eurotrib dot com) on Mon May 25th, 2009 at 08:54:02 AM EST
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That might certainly be the fact if your current grid is mismanaged and you can't get it in order. Happily, that's not the case around here.

Furthermore, the grid is a far more technical and capital intensive (ie. less people intensive) business than say hospitals, and hence it lends itself better to centralised state control and monopoly.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Mon May 25th, 2009 at 09:04:42 AM EST
[ Parent ]
Tell that to the European Commission...

The brainless should not be in banking. — Willem Buitler
by Migeru (migeru at eurotrib dot com) on Mon May 25th, 2009 at 09:06:01 AM EST
[ Parent ]
In the US, hallmark of free enterprise competition, the grid is an absolute mess.  And it's not coherently planned and managed simply because it's become so cannabalized.  30 years of market deregulation has allowed the grid to deteriorate to the point where it now demands huge new investment, and worse, from a security standpoint, is at the breaking point..

Deciding where the most efficient new and rebuilt lines and substations, as well as who's going to pay, hasn't been managed well by the current state of affairs.  for example, excellent wind projects in California have been waiting for over a decade! for transmission issues to be resolved.

The grid, as a social necessity, needs to be managed centrally, with efficiency as the ultimate criteria.  With appropriate oversight regulation of course.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Mon May 25th, 2009 at 09:21:52 AM EST
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The grid, as a social necessity, needs to be managed centrally, with efficiency as the ultimate criteria.
At least the backbone of the grid, the main lines.

There is a reasonable argument if the finer mesh of the grid is better managed by smaller and more nimble companies, and reasonable people can disagree over that. It's is probably heavily dependent on local characteristics.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid (arvid.hallen at gmail.com) on Mon May 25th, 2009 at 09:26:18 AM EST
[ Parent ]
Yes, i'm only referring to the HV transmission grid over large areas, even nations, including inter-market trading.  the distribution grid is likely best managed by local nimble entities who are not competing.

As J pointed out before, it was the incompetence, not the government or the system, hindered by the quarterly profit motive.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Mon May 25th, 2009 at 09:41:24 AM EST
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I'm all in favour of competition, provided it includes competition on quality, and not just cost.

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
by ChrisCook (cojockathotmaildotcom) on Mon May 25th, 2009 at 03:02:00 PM EST
[ Parent ]
to the UK government being incompetent. The Thatcherite ideologues used that situation to make the case that the problem was government, not the incompetence.

By sheer repetition (of the above, plus the trumpeting that the profits reliably extracted by the shareholders of the private companies put in charge of the rent were a good thing), it worked.

But the fact is, the problem is not the government, it's the incompetence. And privatisation is not the only solution to that. Quite the opposite: demonising the government further makes it worse, as fewer people want to work for government in the positions required to do the job.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Mon May 25th, 2009 at 09:08:29 AM EST
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