On several occasions has said that if that the mobile component out of the Cali municipal utilities and energy components of water would not survive.
This premise is certain to do nothing for these two components have economic viability.
Today gives the energy component and component losses of water is in equilibrium.
Energy. This component consists of the distribution, marketing and generation. The share of generation is currently achieving positive cash flows for the deal they made in October 2005, although EMCALI are paying directly to the holders of the bonds were issued in New York to finance the construction of the plant. The distribution and marketing of cast permanent losses, mainly due to high operating costs that have EMCALI. The regulation in case power goes further than the regulation of water, because in the beginning of the schemes provided by the domestic interconnection that existed in the system, have country-level achievement, cost-efficient for each of the activities that are paid through fees charged to the end user, companies do not for any reason may charge the costs to pass that value efficiency so costs remain higher value in generating EMCALI lost in the operation.
As an example I have always given comparative a lineman for three scenarios, at all costs EMCALI this lineman is worth about 4 billion pesos, the regulation only allows about 1 million 700 thousand pesos and competition that same lineman will cost 1 million 200 thousand pesos. As can see, EMCALI can only transfer the cost-efficiency rate of 1 million 700 thousand dollars and the difference goes to the economic losses can not recover that cost, while the competition is having additional resources to be more competitive.
The same happens with the activities of transport, supplies, equipment and tools.
The share of electricity that is purchased or generated, no impact from this point of view, because any additional value or savings in this area goes directly to the tariff, thus moving the user, so any successful purchase benefits management the user for this purchase is that management was achieved in 2004, 2005 and 2006 were achieved lower levels of tariff for Caleños.
Another reason that affects the economic loss is the level of energy losses is the order of 26%, and that when the regulation only recognizes the 14.75% which means that for every 100 kWh to purchase only sells EMCALI 74 kWh, the regulation allows 85 Kwh charge difference, the company that 15 kWh are lost. For this reason, we must raise awareness that plans for energy loss reduction is a priority to run but cause a disturbance in some users and politically exploited by others.
As can be seen for the component to generate energy resources, should reduce costs and improve productivity, having to reach below the efficiency that can be transferred to the user. The union for workers in their contributions they made in the revision of the collective bargaining agreement of May 2004, knew that the next term of the agreement shall take effect beginning January 1, 2009 should give more in costs staff, this review of the convention was not.
Water. This component consists of water and wastewater, contrary to what happens in energy regulation is not cost effective for activities laid. For over 8 years is trying to implement these cost-efficient, but the diversity of service providers has not allowed for this reason all costs regardless of the amount transferred to the road user fee. Because of this, this component is in equilibrium, generates no losses and that these increased values \u200b\u200bare transferred to the user.
Sooner or later the regulation will have to put a cap on these costs, which will necessarily lead, if not done corrections to economic losses in this component also, in an earlier letter stated the benefits to the user the power to produce water cheaper. With a business process more efficient, will benefit users directly mitigating the risk that when you enter the new regulation, the company lost.
The water losses should be substantially lowered, and the mechanism is the segmentation, which is designed from the year 2006, what is lacking is the implementation, the loss levels are high but still within the national average.
drinking water and sewage, but the business is in economic equilibrium rates are the most expensive in the country and has a high risk that with the change of regulation has economic losses. In this also the union was aware and knew to enter a review of the benefits to be competitive levels and achieve mitigate future risks.
order that these two businesses are self-sustaining and cost affordable to its users, it must reduce energy and water losses, identify sources of water by gravity, without pumping, make good buying power, but all lower operational costs of both inputs tools and equipment but even more important to lower staff costs, to which must be a negotiation of the collective bargaining agreement with the urgency that was scheduled for last summer 2008 and optimize more processes.
Carlos Alfonso Potes V.
Consultant, Former General Manager EMCALI
http://carlosalfonsopotes.blogspot.com/
capotesvic@gmail.com
June 13, 2009
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