RWE plans 4,000 MW of wind power for UK

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German energy giant RWE AG has revealed that it plans to build 4,000 megawatts (MW) of wind power in the United Kingdom.

Through its renewables arm RWE Innogy, the company was one of the big winners in the recent awarding of Round 3 offshore wind contracts. Overall, Round 3 contracts covered 25 gigawatts (GW) of wind capacity. The investment from RWE Innogy could be worth more than 12 billion euros (US $17.3 billion) in the coming decade.

"The UK offshore wind energy market is among the most attractive in all of Europe," commented Martin Skiba, head of RWE Innogy's Offshore Wind Department. "The Round 3 tendering process is the latest major opportunity to secure rights for the development of large-scale, deep-sea wind farms in this market. Given our experience with the development and construction of offshore wind farms, especially in the UK, we now have the unique opportunity to move a major step closer to achieving our goals of developing renewable energies in Europe."

RWE Innogy is involved in two of the nine proposed Round 3 wind farm sites. One of these is the facility at Dogger Bank, the largest planned offshore wind farm in the world. The company has signed zone development agreements for the Bristol Channel Zone off the coasts of South Wales and North Devon, which comprises the 1.5-GW Atlantic Array project. RWE was also part of the Forewind consortium with Scottish and Southern Energy plc, Statkraft AS and Statoil ASA, which won the rights to build the 9-GW Dogger Bank Zone project off the Yorkshire coast. Dogger Bank also has capacity to add another 4 GW in the future.

The Dogger Bank Zone is about 8,600 square kilometres in size and is situated between 125 and 195 kilometres off the Yorkshire coast. Last September, the European Wind Energy Association identified the Dogger Bank Zone as a potential central 'node' between the UK, Norway and continental Europe for an inter-European power system that could be in place by 2020. The 'node' could balance fluctuating wind power output by using stored power from Norwegian hydroelectric stations. This, in turn, could be transmitted as base-load electricity.

Off the North Wales coast, RWE Innogy already operates the 60-megwatt (MW) North Hoyled wind farm, which is the UK's first large-scale offshore wind farm, as well as the newly completed 90-MW Rhyl Flats Offshore Windfarm.

Nearby, the company is preparing to begin construction of the 576-MW Gwynt y Môr Offshore Windfarm. RWE Innogy also owns a 50% share in the 500-MW Greater Gabbard offshore wind farm off the east coast of England, which is scheduled for completion next year.

In related news, RWE has announced that it will build the Nordsee Ost offshore wind farm, one of the first in Germany, with preparatory work starting this year. The wind farm has a planned installed capacity of 295 MW and will be located about 30 kilometres northwest of the island of Helgoland. The plan is to erect a total of 48 turbines, and the investment will top 1 billion euros (US $1.45 billion).

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Hydro One and Alectra announce major investments to strengthen electricity infrastructure and improve local reliability in the Hamilton area

Hydro One and Alectra Hamilton Grid Upgrades will modernize electricity infrastructure with new transformers, protection devices, transmission and distribution improvements, tree trimming, pole replacements, and line refurbishments to boost reliability and reduce outages across region.

 

Key Points

A $250M plan to modernize Hamilton transmission and distribution, reducing outages and improving reliability by 2022.

✅ New transformers and protection devices to cut outages

✅ Refurbished 1915 line powering Hamilton West Mountain

✅ Tree trimming and pole replacements across 1,260 km

 

Hydro One Networks Inc. (Hydro One), Ontario's largest electricity transmission and distribution company whose delivery rates recently increased, and Alectra Utilities have announced they expect to complete approximately $250 million of work in the Hamilton area by 2022 to upgrade local electricity infrastructure and improve service reliability.

As part of these plans to strengthen the electricity grid in the Hamilton region, where utilities must adapt to climate change pressures, investments are expected to include:

installing quieter, more efficient transformers in four stations across Hamilton to assist in reducing the number of outages;
replacing protection and switching devices across the city to shorten outage restoration times, reflecting how transmission line work underpins reliability;
refurbishing a power line originally installed in 1915 that is critical to powering the Hamilton West Mountain area; and,
trimming hazardous trees across more than 1,260 km of overhead powerlines and replacing more than 270 poles.
Hydro One will be working with Alectra Utilities to replace aging infrastructure at Elgin transmission station.

"A loss of power grinds life to a halt, impacting businesses, families and productivity. That's why Hydro One is partnering with Alectra Utilities to support a growing local economy in Hamilton, while improving power reliability for its residents," said Jason Fitzsimmons, Chief Corporate Affairs and Customer Care Officer. "Replacing aging infrastructure and modernizing equipment is part of our plan to build a stronger, safer and more reliable electricity system for Ontario now and into the future." 

"Partnering with Hydro One to invest in our local community will create a safer, more resilient and reliable system for the future," said Max Cananzi, President, Alectra Utilities.  "In addition to investments in the transmission system, Alectra Utilities also plans to invest $235 million over the next five years to renew, upgrade and connect customers to the electrical distribution and supporting systems in Hamilton. Investments in the transmission and distribution systems in Hamilton will contribute to the long-term sustainability of our communities."

"I am pleased to see Hydro One and Alectra investing in modernizing local electricity infrastructure and improving reliability," said Member of Provincial Parliament, Donna Skelly.  "Safe and reliable power is essential to supporting local families, businesses and our community."

Across Ontario, First Nations call for action on urgently needed transmission lines highlight the importance of timely grid investments.

Hydro One's investments included in this announcement are captured in its previously disclosed future capital expenditures, amid proposed projects like the Meaford hydro project across Ontario.

Much of Hydro One's electricity system was built in the 1950s, and replacing aging assets is critical as delays affecting a cross-border transmission line elsewhere have shown. Its three-year, $5 billion investment plan supports safe and reliable power to communities across Ontario, and strong regulatory oversight illustrated by the ATCO Electric penalty helps maintain public trust.


 

 

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Current Model For Storing Nuclear Waste Is Incomplete

Nuclear Waste Corrosion accelerates as stainless steel, glass, and ceramics interact in aqueous conditions, driving localized corrosion in repositories like Yucca Mountain, according to Nature Materials research on high-level radioactive waste storage.

 

Key Points

Degradation of waste forms and canisters from water-driven chemistry, causing accelerated, localized corrosion in storage.

✅ Stainless steel-glass contact triggers severe localized attack

✅ Ceramics and steel co-corrosion observed under aqueous conditions

✅ Yucca Mountain-like chemistry accelerates waste form degradation

 

The materials the United States and other countries plan to use to store high-level nuclear waste, even as utilities expand carbon-free electricity portfolios, will likely degrade faster than anyone previously knew because of the way those materials interact, new research shows.

The findings, published today in the journal Nature Materials (https://www.nature.com/articles/s41563-019-0579-x), show that corrosion of nuclear waste storage materials accelerates because of changes in the chemistry of the nuclear waste solution, and because of the way the materials interact with one another.

"This indicates that the current models may not be sufficient to keep this waste safely stored," said Xiaolei Guo, lead author of the study and deputy director of Ohio State's Center for Performance and Design of Nuclear Waste Forms and Containers, part of the university's College of Engineering. "And it shows that we need to develop a new model for storing nuclear waste."

Beyond waste storage, options like carbon capture technologies are being explored to reduce atmospheric CO2 alongside nuclear energy.

The team's research focused on storage materials for high-level nuclear waste -- primarily defense waste, the legacy of past nuclear arms production. The waste is highly radioactive. While some types of the waste have half-lives of about 30 years, others -- for example, plutonium -- have a half-life that can be tens of thousands of years. The half-life of a radioactive element is the time needed for half of the material to decay.

The United States currently has no disposal site for that waste; according to the U.S. General Accountability Office, it is typically stored near the nuclear power plants where it is produced. A permanent site has been proposed for Yucca Mountain in Nevada, though plans have stalled. Countries around the world have debated the best way to deal with nuclear waste; only one, Finland, has started construction on a long-term repository for high-level nuclear waste.

But the long-term plan for high-level defense waste disposal and storage around the globe is largely the same, even as the U.S. works to sustain nuclear power for decarbonization efforts. It involves mixing the nuclear waste with other materials to form glass or ceramics, and then encasing those pieces of glass or ceramics -- now radioactive -- inside metallic canisters. The canisters then would be buried deep underground in a repository to isolate it.

At the generation level, regulators are advancing EPA power plant rules on carbon capture to curb emissions while nuclear waste strategies evolve.

In this study, the researchers found that when exposed to an aqueous environment, glass and ceramics interact with stainless steel to accelerate corrosion, especially of the glass and ceramic materials holding nuclear waste.

In parallel, the electrical grid's reliance on SF6 insulating gas has raised warming concerns across Europe.

The study qualitatively measured the difference between accelerated corrosion and natural corrosion of the storage materials. Guo called it "severe."

"In the real-life scenario, the glass or ceramic waste forms would be in close contact with stainless steel canisters. Under specific conditions, the corrosion of stainless steel will go crazy," he said. "It creates a super-aggressive environment that can corrode surrounding materials."

To analyze corrosion, the research team pressed glass or ceramic "waste forms" -- the shapes into which nuclear waste is encapsulated -- against stainless steel and immersed them in solutions for up to 30 days, under conditions that simulate those under Yucca Mountain, the proposed nuclear waste repository.

Those experiments showed that when glass and stainless steel were pressed against one another, stainless steel corrosion was "severe" and "localized," according to the study. The researchers also noted cracks and enhanced corrosion on the parts of the glass that had been in contact with stainless steel.

Part of the problem lies in the Periodic Table. Stainless steel is made primarily of iron mixed with other elements, including nickel and chromium. Iron has a chemical affinity for silicon, which is a key element of glass.

The experiments also showed that when ceramics -- another potential holder for nuclear waste -- were pressed against stainless steel under conditions that mimicked those beneath Yucca Mountain, both the ceramics and stainless steel corroded in a "severe localized" way.

Other Ohio State researchers involved in this study include Gopal Viswanathan, Tianshu Li and Gerald Frankel.

This work was funded in part by the U.S. Department of Energy Office of Science.

Meanwhile, U.S. monitoring shows potent greenhouse gas declines confirming the impact of control efforts across the energy sector.

 

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Heat Exacerbates Electricity Struggles for 13,000 Families in America

Energy Poverty in Extreme Heat exposes vulnerable households to heatwaves, utility shutoffs, and unreliable grid infrastructure, straining public health. Community nonprofits, cooling centers, and policy reform aim to improve electricity access, resilience, and affordable energy.

 

Key Points

Without reliable, affordable power in heatwaves, health risks rise and cooling, food storage, and daily needs suffer.

✅ Risks: heat illness, dehydration, and indoor temperatures above 90F

✅ Causes: utility shutoffs, aging grid, unpaid bills, remote areas

✅ Relief: cooling centers, aid programs, weatherization, bill credits

 

In a particular pocket of America, approximately 13,000 families endure the dual challenges of sweltering heat and living without electricity, and the broader risk of summer shut-offs highlights how widespread these pressures have become across the country. This article examines the factors contributing to their plight, the impact of living without electricity during hot weather, and efforts to alleviate these hardships.

Challenges Faced by Families

For these 13,000 families, daily life is significantly impacted by the absence of electricity, especially during the scorching summer months. Without access to cooling systems such as air conditioners or fans, residents are exposed to dangerously high temperatures, which can lead to heat-related illnesses and discomfort, particularly among vulnerable populations such as children, the elderly, and individuals with health conditions, where electricity's role in public health became especially evident.

Causes of Electricity Shortages

The reasons behind the electricity shortages vary. In some cases, it may be due to economic challenges that prevent families from paying utility bills, resulting in disconnections. Other factors include outdated or unreliable electrical infrastructure in underserved communities, as reflected in a recent grid vulnerability report that underscores systemic risks, where maintenance and upgrades are often insufficient to meet growing demand.

Impact of Extreme Heat

During heatwaves, the lack of electricity exacerbates health risks and quality of life issues for affected families, aligning with reports of more frequent outages across the U.S. Furthermore, the absence of refrigeration and cooking facilities can compromise food safety and nutritional intake, further impacting household well-being.

Community Support and Resilience

Despite these challenges, communities and organizations often rally to support families living without electricity. Local nonprofits, community centers, and government agencies provide assistance such as distributing fans, organizing cooling centers, and delivering essentials like bottled water and non-perishable food items during heatwaves to alleviate immediate hardships and improve summer blackout preparedness in vulnerable neighborhoods.

Long-term Solutions

Addressing electricity access issues requires comprehensive, long-term solutions. These may include policy reforms to ensure equitable access to affordable energy, investments in upgrading infrastructure in underserved areas, and expanding financial assistance programs to help families maintain uninterrupted electricity service, in recognition that climate change risks increasingly stress the grid.

Advocacy and Awareness

Advocacy efforts play a crucial role in raising awareness about the challenges faced by families living without electricity and advocating for sustainable solutions. By highlighting these issues, community leaders, activists, and policymakers can work together to drive policy changes, secure funding for infrastructure improvements, and promote energy efficiency initiatives, drawing lessons from Canada's harsh-weather grid exposures that illustrate regional vulnerabilities.

Building Resilience

Building resilience in vulnerable communities involves not only improving access to reliable electricity but also enhancing preparedness for extreme weather events. This includes developing emergency response plans, educating residents about heat safety measures, and fostering community partnerships to support those in need during crises.

Conclusion

As temperatures rise and climate impacts intensify, addressing the plight of families living without electricity becomes increasingly urgent. By prioritizing equitable access to energy, investing in resilient infrastructure, and fostering community resilience, stakeholders can work towards ensuring that all families have access to essential services, even during the hottest months of the year. Collaborative efforts between government, nonprofit organizations, and community members are essential in creating sustainable solutions that improve quality of life and promote health and well-being for all residents.

 

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US judge orders PG&E to use dividends to pay for efforts to reduce wildfire risks

PG&E dividend halt for wildfire mitigation directs cash from shareholders to tree clearing, wildfire risk reduction, and probation compliance under Judge William Alsup, amid bankruptcy, Camp Fire liabilities, and power line vegetation management mandates.

 

Key Points

A court-ordered dividend halt funding vegetation clearance and wildfire mitigation as PG&E meets probation terms.

✅ Judge Alsup bars dividends until mitigation targets met

✅ 375,000 trees cleared near power lines in high-risk zones

✅ Measures tied to probation amid bankruptcy and liabilities

 

A U.S. judge said on Tuesday that PG&E may not resume paying dividends and must use the money to fund its plan for cutting down trees to reduce the risk of wildfires in California, stopping short of more costly measures he proposed earlier this year.

The new criminal probation terms for PG&E are modest compared with ones the judge had in mind in January and that PG&E said could have cost upwards of $150 billion.

The terms will, however, keep PG&E under the supervision of Judge William Alsup of the U.S. District Court for the Northern District of California and hold the company, which also is in Chapter 11 bankruptcy and whose bankruptcy plan has drawn support from wildfire victims, to its target for clearing areas around its power lines of some 375,000 trees this year.

PG&E's probation stems from its felony conviction after a deadly 2010 natural gas pipeline blast in San Bruno, California, near San Francisco, that killed eight people and injured 58 others.

PG&E filed for bankruptcy protection on Jan. 29 in anticipation of liabilities from wildfires, including a catastrophic 2018 blaze, the Camp Fire, for which PG&E later pleaded guilty to 85 counts in state court. It killed 86 people in the deadliest and most destructive wildfire in California history.

At a January hearing, Alsup, who is overseeing PG&E's probation, said he felt compelled to propose additional probation terms in the aftermath of Camp Fire. San Francisco-based PG&E expects its equipment will be found to have caused the blaze.

The probation process is separate from San Francisco-based PG&E's bankruptcy filing and from operational measures such as its pandemic response and shutoff moratorium implemented to protect customers.

As the company faces $30 billion in wildfire liabilities and bankruptcy proceedings and has opened a wildfire assistance program for affected residents, the energy company is expected to name as its new chief executive Bill Johnson, a source said on Tuesday. Johnson has been the CEO of the Tennessee Valley Authority since 2013 and is retiring on Friday.

Additional probation terms imposed by Alsup on Tuesday will require PG&E to meet goals in a wildfire mitigation plan it unveiled in February.

The goals include removing 375,000 dead, dying or hazardous trees from areas at high risk of wildfires in 2019, compared with 160,000 last year.

The judge said PG&E will not be able to pay shareholders until it complies with his new probation terms.

Shares fell 2% on Tuesday to close at $17.66 on the New York Stock Exchange and are down 63% since November 2018 due to concerns about the company's bankruptcy and wildfire liabilities, though the utility has said rates are set to stabilize in 2025 as part of its long-term plan. The shares traded as low as $5.07 in January.

PG&E in December 2017 suspended its quarterly cash dividend, while continuing to pay significant property taxes to California counties, citing uncertainty about liabilities from wildfires in October of that year that struck Northern California.

PG&E paid $798 million in dividends in 2017 and $925 million in 2016, a period in which the company did a poor job of clearing areas around its power lines of hazardous trees, according to Alsup.

Money meant for shareholders should have been spent on efforts to reduce wildfire risks in recent years, Alsup said at Tuesday's hearing.

"PG&E has started way more than its share of these fires," Alsup said.

"I want to see the people of California safe," the judge added.

Lawyers for PG&E did not contest the new terms, which the company considers more feasible than terms Alsup proposed in January.

To comply with the terms Alsup proposed in January, PG&E said it would have to remove 100 million trees. The company added that shutting power lines during high winds as Alsup proposed would not be feasible because the lines traverse rural areas to service cities and suburbs.

Idling lines could also affect the power grid in other states, PG&E said.

Alsup on Tuesday said he was still considering his proposal to require PG&E to shut down power lines during windy weather to prevent tree branches from making contact and sparking wildfires linked to power lines in the region.

 

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FPL stages massive response to Irma but power may not be back for days or weeks

FPL Power Restoration mobilizes Florida linemen and mutual-aid utility crews to repair the grid, track outages with smart meters, prioritize hospitals and essential services, and accelerate hurricane recovery across the state.

 

Key Points

FPL Power Restoration is the utility's hurricane effort to rebuild the grid and quickly restore service across Florida.

✅ 18,000 mutual-aid utility workers deployed from 28 states

✅ Smart meters pinpoint outages and accelerate repairs

✅ Critical facilities prioritized before neighborhood restorations

 

Teams of Florida Power & Light linemen, assisted by thousands of out-of-state utility workers and 200 Ontario workers who joined the effort, scrambled across Florida Monday to tackle the Herculean task of turning the lights back on in the Sunshine State.

The job is quite simply mind-boggling as Irma caused extensive damages to the power grid and the outages have broken previous records, and in other storms Louisiana's grid needed a complete rebuild after Hurricane Laura to restore service.

By 3 p.m. Monday, some 3.47 million of the company's 4.9 million customers in Florida were without power. This breaks the record of 3.24 million knocked off the grid during Hurricane Wilma in 2005, according to FPL spokesman Bill Orlove.

Prepared to face massive outages, FPL brought some 18,000 utility workers from 28 states here to join FPL crews, including Canadian power crews arriving to help restore service, to enable them to act more quickly.

“That’s the thing about the utility industry,” said  Alys Daly, an FPL spokeswoman. “It’s truly a family.”

Even with what is believed to be the largest assembly of utility workers ever assembled for a single storm in the United States, power restoration is expected to take weeks, not days in some areas.

FPL vowed to work as quickly as possible as they assess the damage and send out crews to restore power.

"We understand that people need to have power right away to get their lives back to normal," Daly said.

The priority, she said, were medical and emergency management facilities and then essential service providers like gas stations and grocery stores.

After that, FPL will endeavor to repair the problems that will restore power to the maximum number of people possible. Then it's individual neighborhoods.

As of 3 p.m. Monday, 219,040 of FPL's 307,600 customers on the Space Coast had no power. That's an improvement over the 260,600 earlier in the day.

Daly was unable to say Monday how many crews FPL had working in Brevard County. In some areas, power came back relatively swiftly, much quicker than expected.

" I was definitely surprised at how quickly they got our power back on here in NE Palm Bay," said Kelli Coats. "We lost power last night around 9 p.m Sunday and regained power around 8:30 a.m. today."

Others, many of them beachside, were looking at a full 24 hours without power and it's possible it could extend into Tuesday or longer.

One reason for improved response times since 2005, Daly said, is the installation of nearly 5 million "Smart Meters" at residences. These new devices, which replaced older analog models, allows FPL crews to track a neighborhood's power status via handheld computers, pinpointing the cause of an outage so it can be repaired.

Quick restoration is key as stores and restaurants struggle to re-open, and Gulf Power crews restored power in the early push. Without electricity many of them just can't re-start operations and get goods and services to consumers.

At the Atlanta-based Waffle House, which Federal Emergency Management Administration use to gauge the severity of damage and service to an area, restaurant executives are reviewing its operations in Florida and should have a better handle Monday afternoon how quickly restaurants will re-open.

"Right now, we're in an assessment phase," said Pat Warner, spokesman for Waffle House. "We're looking at which stores have power and which ones have damage."

FEMA's color-coded Waffle House Index started after the hurricanes in the early 2000s. It works like this: When an official phones a Waffle House to see if it is open,  the next stop is to assess it's level of service. If it's open and serving a full menu, the index is green. When the restaurant is open but serving a limited menu, it's yellow. When it's closed, it's red.

 

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Will Israeli power supply competition bring cheaper electricity?

Israel Electricity Reform Competition opens the supply segment to private suppliers, challenges IEC price controls, and promises consumer choice, marginal discounts, and market liberalization amid natural gas generation and infrastructure remaining with IEC.

 

Key Points

Policy opening 40% of supply to private vendors, enabling consumer choice and small discounts while IEC retains the grid.

✅ 40% of retail supply opened to private electricity suppliers

✅ IEC keeps meters, lines; tariffs still regulated by the authority

✅ Expected discounts near 7%, not dramatic price cuts initially

 

"See the pseudo-reform in the electricity sector: no lower prices, no opening the market to competition, and no choice of electricity suppliers, with a high rate for consumers despite natural gas." This is an advertisement by the Private Power Producers Forum that is appearing everywhere: Facebook, the Internet, billboards, and the press.

Is it possible that the biggest reform in the economy with a cost estimated by Israel Electric Corporation (IEC) (TASE: ELEC.B22) at NIS 7 billion is really a pseudo-reform? In contrast to the assertions by the private electricity producers, who are supposedly worried about our wallets and want to bring down the cost of electricity for us, the reform will open a segment of electricity supply to competition, as agreed in the final discussions about the reform. No less than 40% of this segment will be removed from IEC's exclusive responsibility and pass to private hands.

This means that in the not-too-distant future, one million households in Israel will be able to choose between different electricity suppliers. IEC will retain the infrastructure, with its meter and power lines, but for the first time, the supplier who sends the monthly bill to our home can be a private concern.

Up until now, the only regulatory agency determining the electricity rate in Israel was the Public Utilities Authority (electricity), i.e. the state. Now, in the framework of the reform, as a result of opening the supply segment to competition, private electricity producers will be able to offer a lower rate than IEC's, with mechanisms like electricity auctions shown to cut costs in some markets, while IEC's rate will still be controlled by the Public Utilities Authority (electricity).

This situation differs from the situation in almost all European countries, where the electricity market is fully open to competition and the EU is pursuing an electricity market revamp to address pricing challenges, with no electricity price controls and free switching by consumers between electricity producers, just as in the mobile phone market. This measure has not lowered electricity prices in Europe, where rates are higher than in Israel, which is in the bottom third of OECD countries in its electricity rate.

Regardless of reports, supply will be opened to competition and we will be able to choose between electricity suppliers in the future. Are the private electricity producers nevertheless right when they say that the electricity sector will not be opened to "real competition"?

 

What is obviously necessary is for the private producers to offer a substantially lower rate than IEC in order to attract as many new customers as possible and win their trust. Can the private producers offer a significantly lower rate than IEC? The answer is no, at least not in the near future. The teams handling the negotiations are aware of this. "The private supplier's price will not be significantly cheaper than IEC's controlled price; there will be marginal discounts," a senior government source explains. "What is involved here is another electricity intermediary, so it will not contribute to competition and lowering the price," he added.

There are already private electricity producers supplying electricity to large business customers - factories, shopping malls, and so forth - at a 7% discount. The rest of the electricity that they produce is sold to the system manager. When supply is opened to competition, it can be assumed that the private suppliers will also be able to offer a similar discount to private consumers.

Will a 7% discount cause a home consumer to leave reliable and familiar IEC for a private producer, given evidence from retail electricity competition in other markets? This is hard to know.

#google#

Why cannot private electricity producers offer a larger discount that will really break the monopoly, as their advertisement says they want to do? Chen Herzog, chief economist and partner at BDO Consulting, which is advising the Private Power Producers Forum, says, "Competition in supply requires the construction of competitive power plants that can compete and offer cheaper electricity.

"The power plants that IEC will sell in the reform, which will go on selling electricity to IEC, are outmoded, inefficient, and non-competitive. In addition, the producer will have to continue employing IEC workers in the purchased plants for at least five years. The producer will generate electricity in IEC power stations with IEC employees and additional overhead of a private producer, with factors such as cost allocation further shaping end-user rates. This amounts to being an IEC subcontractor in production. There is no saving on costs, so there will be no surplus to deduct from the consumer price," he adds.

The idea of opening supply to electricity market competition on such a large scale sounds promising, but saving on electricity for consumers still looks a long way off.

 

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