Ok guys I know I am going to catch alot of flack for this, but We have just had Meeting with the Cheif of Mirant Operations and New Chairman Of our board (ie JPS). After this meeting a number of things have become clearer, for me at least.
First of, Life can be a b*tch and as such we just have to learn how to role with the punches.
Now I must remind everyone that Mirant is first and Formost, a profit making organization, and this is perfectly acceptable, as most organizations are profit making. As a result of this however, they will set up business processes that ensure that they do so, again I must say this is not a sin.
Now while JPS's business processes are not first class, as yet, there is still a need to make money. This being the case one might ask, why would the Govt sell out a public service Company to an Organization whos #1 priority is not the wellfare of the population, but rather to make a profit. Dont get me wrong JPS wants and needs a happy customer base, and is concerned, in there own way, about the welfare of costumers, remember the majority of the workers at JPS are customers as well, but the bottom line for Mirant is not re-election, but rather to please share holders.
That being sad, pryor to the 2001 sale of the Company, the island was suffering from rolling blakouts as the Generating capacity, as well as other factors, could not cope with the growth in the demand. the Govt then realized that in a few years the demand would outstrip supply. Off course the quickest solution was of course build a new Power plant. prob was power plants cost money. Now I am sure the Govt could have gotten a loan from the World bank, but for what ever reason the Govt decided to get sell.
Now looking at it, it made sense, I can say catagorically that the Jamaican Govt, is INCAPABLE of running any organization or project ifficiently. I will almost go as far as to say it is Flat out IMPOSSIBLE.
Not only was the Govt running JPS poorly, (through no reel fault of there own, I'll explain why in another blog) but, the govt at the time did not want to spend that kind of money (> 100Mil) on an expansion project, knowing full well that curruption would kill most of the budget. Privetization offered the perfect way out.
To be honest the difference in operations that I have been told about have been Significant, when I here of stories of the old days, I find it amazing the amount of foolishnes and the amount of money wasted by this Company, and the sad part is as much as we are more effiecient now, we have yet to reach first class organization status. I have to ask, what was the Govt Doin with the Company :S. It is really sad.
High Oil Prices
Off course as the PR camapin of late has been saying, the major cause for increases are of course the Oil Prices, JPS dont really benifit from this at all. U see, the economics of it is that, as light rates go up due to oil prices, people conserve more and that means less revenue and smaller profits.
Now one of the biggest areas of contention is of course the z factor and the X factor ( if i have the names correctly). Now like it has been said before Transmition and Distribution Lines cannot be insured by third parties, as a result every power company has to Insure in themselves, this insurabnce cost, is usually passed on to the consumer (thats the international practice) on of the main Q's of course is why wasnt this fund there before. the Answer: because the Govt is clueless when it comes to running any Organization Ifficiently and correctly. Of course after Ivan the company, needing to make a profit asks to pass the cost to consumers, again I say, Mirant is a Profit making organization and as such it is well wsith there rights to do so, besides this is a standard intn'l practice and Mirant is after all an Intern'l organization.
As a result
I think we are goin through a transitional phase, while the Govt had the company things were fine, because the Govt was not concerned about profits primerly, however Mirant is and as such changes will be made. It will be difficult and it will advbersley affect our lives, but Mirant is doing nothing it did not say it would do, the reall blame must go to the Govt. who decided to sell the Company. At the same time whaty would have been the alternative :S.