Cancellation of Union Fenosa Contract

Submitted by Pete on 25 August, 2006 - 07:39.

"MANAGUA (AFX) - Nicaragua's comptroller's office yesterday called for the cancellation of the government's contract with Spanish electricity distributor Union Fenosa SA, saying it 'has not fulfilled its contractual obligations' by failing to supply sufficient energy."

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from: Nicaragua Calls for Cancellation of Union Fenosa Contract Amid Energy Crisis

source: AFX-Europe, August 25, 2006.

via: HighBeam Research Logo HighBeam™ Research

Copyright 2006 AFX-Europe

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A simple idea

Submitted by Chele John on 25 August, 2006 - 14:09.

I'd like to propose a simple solution to the problem. Make people pay for the electricity they use.

If anyone has spent much time here you can see all the illegal hookups to the power lines. In fact, I'll bet a lot of you didn't know there is absolutely no penalty for stealing electricity. You can hook up and take as much as you want. The electric company of course wills end someone out to unhook you...if they notice your connection...but you can then re-hook everything the moment that crew leaves and have absolutely no fear of any kind of criminal penalty or even a light bill showing up for you to pay!

It's this kind of silliness that makes me shake my head here. If people actually spent some time in jail for stealing electricity...there might be fewer thieves and the amount of people who actually pay their electric bill wouldn't have to suffer blackouts due to not enough money to pay for the electricity we use.

Save the solar panel/wind turbine talk. We have to deal with reality here and it's time those who steal were made to pay the price.

Sorry for the rant!

a bit of both would be a good idea . . .

Submitted by arlington on 25 August, 2006 - 15:23.

obviously users should pay, that doesn't negate the need for using your own resources such as wind, thermal . . . I wonder what a private enterprise was thinking hooking up with a developing country from a profit motive . . . they can barely make money in north america . . .we're teetering on blackouts here and we have the ability to pay . . . half of Nicaragua is on $2 a day income (jump me if I'm wrong but it's a figure I heard recently, no source documented dock me marks if you will ; ) Nicaragua has a hell of a lot of infrastructure to correct before profit will be an option . . . and as all capitalists know . . . governemnt builds infrastructure . . . companies reap profits . . . that's the Ontario experience anyway . . .

Assorted points

Submitted by fyl on 25 August, 2006 - 13:04.

Now, I think that privatization was a mistake and I offer the "California experience" as another example. So, I am all for getting control of distribution back to Nicaragua.

Some points:

  • One of the generation problems is that the generators are not getting paid by UF in a timely manner.
  • If UF is "giving away" 40% of what it distributes, isn't that UF's problem to deal with?
  • I have heard (but not seen) that the law says that UF can only re-sell hydrocarbon generated electricity. (Clearly not right as some is hydro.) If so, the Nicaraguan government needs to fix that. There is huge geothermal potential here.
  • Someone needs to be promoting alternative sources including wind and solar.
  • How about promotion of CF lights? They are very inexpensive if bought from manufacturers in Brazil and China.
  • Finally, the article said that Bolaños finally decided getting cheap oil from Venezuela was a good thing. Wow, about time.
  • If it interesting that if there really is a shortage that we continue to see rural electrification projects going in.

The Chavez/F$LN axis...

Submitted by no longer registered on 26 August, 2006 - 08:40.

Cheap oil from Venezuela for whom? And funded by whom? The deal is fatally flawed as it requires today's Nica children to pay for the current consumption of oil. Not only that, leaving out my obvious distaste for the parties involved, the deal actually saddles municipalities with the debt load. These are municipalities that cannot afford to repair their roads, manage waste, etc etc.

Nice pipe dream... reminds me of The Iceman Cometh...

BTW -- rural electrification projects are almost 100% funded by donations as are something akin to 90% of infrastructure projects in Nicaragua...

Geo thermal power

Submitted by thom on 25 August, 2006 - 20:24.

is on line near Leon and are selling under 20 year contract to Fenosa at US$0.0595/kilowatt hour.

http://www.polarisgeothermal.com/main.html

Real deal...

Submitted by no longer registered on 26 August, 2006 - 08:35.

I met one of the engineers from this project (Mark did you ever join us?) and his take on the potential is that, with sufficient investment in infrastructure, Nicaragua could be totally geo-thermal within 10 years and a net exporter of energy in 15 years...

That's great

Submitted by arlington on 25 August, 2006 - 20:34.

Thanks for the link. I'll have a look later.

if I were...

Submitted by no longer registered on 25 August, 2006 - 07:46.

a Union Barbosa shareholder I'd be dancing with glee. Nothing like taking the blame for not being able to DISTRIBUTE electricity the state-owned/controlled generators CANNOT produce!!

And, of course, 40% of whatever they CAN distribute is stolen...

Whomever at Union Barbosa that negotiated this crappy deal should be stripped naked, smothered in honey and 4-pointed over a fire ant hill...

[/rant]

Hey BTW

Submitted by toms on 25 August, 2006 - 07:53.

did or did not USAID put in an entirely NEW distribution System like they did here in Puerto Cabezas???

Well mantained over this short period of time I guess, duhhhh.

Lyin' Farmer John Wayne

My understanding

Submitted by Former NL Member on 25 August, 2006 - 07:48.

the electricity is not stolen as such, it's paid for by others.

As for Fenosa losing the contract, sounds like it's about damn time. Now what happens (I know, read the article Pete linked to)?

You can't steal

Submitted by evets on 26 August, 2006 - 09:12.

electricity. Every electron you take out of the live wire goes back down the neutral. All you do is lower their potential energies. If I can help by providing more fatuous or pointless comments please let me know.

F & P comments are welcome

Submitted by Former NL Member on 26 August, 2006 - 09:15.

This site wouldn't be what it is without fatuousness and pointlessness. I try to do my share daily.

What I meant was, many people complain about how absurdly high their electric bills are, but their bills are high because they are paying for the electricity "stolen" by those who don't pay. Simple as that.

that can't steal electricity.....

Submitted by Che Guevara on 3 September, 2006 - 11:24.

cracked my up. paying for others who don't pay kinda reminds me of the usa health care system.

Kinda, sorta

Submitted by fyl on 3 September, 2006 - 13:01.

The difference is that the stolen part in the US health care system goes into insurance company overhead (including about 25% of doctor costs to deal with them) and insurance company profit.

I want health care, not health insurance.

do you have any kind of insurance . . .

Submitted by arlington on 3 September, 2006 - 11:33.

do you have any kind of insurance . . . they all operate on this principle . . . distributed suffering . . . we don't all hurt at the same time . . . we just do it better in Canada so everyone can share in the benefit whereas you leave 46,000,000 to suffer on their own . . . but the captains of industry and government are OK so that's alright . . . suffer the children to . . . does Jesus have an HMO ; )

as ghandi said, i like this

Submitted by Che Guevara on 3 September, 2006 - 11:49.

jesus fellow, it's the christians i don't like. and jesus said, give to caesar what is caesar's and give to god what is god's. the original separation of church and state. so what is your point? like share the wealth, share the misery?

exactly . . .

Submitted by arlington on 3 September, 2006 - 12:37.

exactly . . . ; )

sharing....

Submitted by Che Guevara on 3 September, 2006 - 12:57.

all i ever needed to know i learned in kindergarten. that is not a very nuanced world view, is it? does it work? and can i freely give? or does the state mandate that i give? do i risk less in this system you describe? and therefore i am rewarded less? i have some ideas about healthcare, but for some strange reason canada and uk's system don't pop into mind. 2 weeks ago, i went to the dentist. the new hygenist (spelling?) said, "man, do you have a lot of money in that mouth." does the system you describe put that money in my mouth? where does the money come from? or will my teeth look like someone from uk? ok, uuuummmmmm, meditation, i feel better. glad to be back.

I don't know how dentists got out . . .

Submitted by arlington on 3 September, 2006 - 13:09.

If those 46 million had a taste of our healthcare, there'd be no going back to a situation of without ; ) It's a win win situation with our healthcare, even most capitalists agree lifting healthcare off the back of business is a huge boon to enterprise. Look at the cost of auto production alone ; )

I don't know how dentists got out . . . of the Canadian Healthcare system. If people have poor teeth it often leads to greater health problems. Our dental is like your healthcare . . . all private and user paid. I know people who get to the dentist about once every five years, it's pretty bad. I've been fortunate to be able to afford a plan, not so for most folks though.

well, i am not

Submitted by Che Guevara on 3 September, 2006 - 13:23.

convinced, but you have a point. toyota i think does not pay for health care. but, i think they pay 10 bucks per hour versus 42 for gm. toyota does not have unions in the usa? but i would think that your described misery index does not sit well. and having had gov't health care, us army, all the animals aren't equal. do you think fidel got the same healthcare everyone else did?

i do think there is a correlation between dental hygiene and heart health in men. but you probably know that or will look it up.

regardless of the system . . .

Submitted by arlington on 3 September, 2006 - 13:34.

regardless of the system . . . some animals are more equal than others but, a solid baseline below which none shall fall is preferrable to no coverage at all. A healthy populace is a productive populace . . . you can't live apart from humanityso you might as well help them stay well . . . every time there's a tax cut here it seems those who receive the cut buy a stronger security system to keep out those who loose the pittance benefit. Enough cuts and we'll be like Brazil where you have to have guards at the house, office, supermarket . . . no thanks

Why only healthcare?

Submitted by Former NL Member on 3 September, 2006 - 14:09.

Why not have the government pay for everyone's food, too? Then we can control people's diets. McDonald's will be outlawed, only food that minimizes health care costs to the government. But why stop there? How about having the government pay for everyone's home? You gotta have a roof over your head and housing is soooo expensive . . .

well I thought we'd save that topic . . .

Submitted by arlington on 3 September, 2006 - 14:13.

well I thought we'd save that topic . . . for after we take care of healthcare but now that you mention it ; )

if that were cancelled . . .

Submitted by arlington on 25 August, 2006 - 07:44.

if that were cancelled . . . maybe someone might step up and discover the wind, solar and geothermal potential of Nicaragua.

If I were a rich man,

Submitted by Che Guevara on 25 August, 2006 - 20:32.

If I were a rich man, Ya ha deedle deedle, bubba bubba deedle deedle dum. All day long I'd biddy biddy bum. If I were a wealthy man. I wouldn't have to work hard. Ya ha deedle deedle, bubba bubba deedle deedle dum. If I were a biddy biddy rich, Yidle-diddle-didle-didle man.

I agree . . .

Submitted by arlington on 25 August, 2006 - 20:35.

a lottery win would go a long way . . . I have bigger vision than my paltry dollars allow me to see