Future survival requires competitive skills
The companies that will succeed in the global power business in 25 years will be those that best understand the productivity implications of the current power game. In the competitive free market for electricity, the inefficient will be driven out. This will include the developer that is unable to achieve higher productivity in developing and financing projects, the engineer-constructor that longs for the old risk-free, cost-plus environment and the trading company that fails to enter into new relationships with the most productive companies in the world. Also in jeopardy will be the operator who can`t reduce O and M costs and the manufacturer who is unable to control overhead or labor costs. Succeeding will be all about productivity. Free market competition drives productivity improvement. In a competitive environment, companies must operate at a more efficient level. The US learned this accidentally through the Public Utilities Regulatory Policies Act, getting us a side benefit of free market competition and lower electricity prices. In other countries the practice of socialism and its final bankruptcy forced adjustments to free market policies.
- OSTI ID:
- 397930
- Journal Information:
- Power Engineering (Barrington), Journal Name: Power Engineering (Barrington) Journal Issue: 11 Vol. 100; ISSN POENAI; ISSN 0032-5961
- Country of Publication:
- United States
- Language:
- English
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