Guest Post by PlanetNL
PlanetNL2 – Muskrat Will Cause Monumental Government Debt and Social Pressure
PlanetNL2 – Muskrat Will Cause Monumental Government Debt and Social Pressure
In last
week’s inaugural PlanetNL, the post-Muskrat rate hike was predicted to rise quickly
into the 30-35 c/kWh range and then to continue to spiral upward as the market
continually fails to deliver required revenue.
This pricing model should be considered theoretical because it’s too
insane to think the Government would actually allow rate runaway to happen and
not attempt to intervene with a better alternative that can preserve stability
of the market and the survival of the utilities that serve it.
Logically,
Government must limit rates to some sustainable level that ratepayers can
bear. They must also not allow the bankruptcy
of NL Hydro and the Nalcor companies as this would lead to the evisceration of
core Government assets to outside interests.
Government has
little choice but to lean heavily on the public purse of the taxpayer to make
up the shortfall in utility revenue.
