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Old 27-10-2008, 09:50 AM
jack--
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the people in here aren't rather polite...
mercia:
sarcasm aside. the tariffs were raised even before the current fall in prices in commodities. moreover, the price of natural gas moves in tandem with the price of oil, substitute or otherwise. in any case, price of oil is largely affected by the decisions of the opec cartel, and we could well see prices rising again.
secondly, there isn't a simplistic model between a purely corporate entity and a government one. even if sing power were to be understood as a simple corporate entity, which it is not, clearly it has to weigh in infrastructure costs in its corporate decisions. and even if it were a wholly government entity, which clearly it isn't, it would have to consider future costs in deciding what to charge consumers now.
my question is, are the shareholders really gaining by the increase in electricity prices? (which we would think unreasonable) or are they merely to offset increase in costs of energy and for costs of infrastructure? (which would be reasonable) the answer to these questions are the important ones.
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