Friday, January 20, 2012

Greek Power Suppliers Energa and Hellas Power heading for a Blackout

Energa and Hellas Power have accumulated huge debts to both the Greek National Power Company DEI and the independent power grid network DESMIE. If things continue to go unchecked, both companies are surely headed for bankruptcy and cease of operations, leaving about 200,000 subscribers literally in the dark.

Interestingly, non incumbent power companies in Greece seem to be treading the path of severe debt, similar to the experiences of non incumbent telecom companies again in Greece.

Perhaps for small markets, due to economies of scale, the economic model of a monopoly (through of course proper and effective government regulation and control; something that has yet to be accomplished) works far better than that of limited or unlimited (regulated or non regulated) competition.

Time will tell.

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