Gauss
BANNED
- Joined
- Oct 31, 2014
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- 514
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Yes, you are right. I applied the free market principle too hastily to Pakistan’s electricity market which is totally controlled by the government. Prices are indeed high enough to provide incentive for external producers to enter the market. But government wont allow it. Any new power project has to be started by the government itself.Only true in a free market. If the government is running the whole operation, this won't happen. So, could an independent operator actually move into the market? From what I've heard before here, it seems like prices are as high or higher than the US, for example. But if you have to have government approval and the government won't approve an external actor, then you are stuck.
Also Pakistan is currently producing far less power than the installed capacity. It’s happening due to a mixture of corruption and incompetence.