Vattenfall: the next Enron? Swedish energy companies hold customers to ransom
A couple of days ago, it was revealed that the Swedish electricity companies, led by state-owned energy giant Vattenfall, had deliberately reduced their energy output in order to force up electricity prices. As many people had long suspected this, no-one was particularly surprised. The heads of these organisations even admitted it, boldly. This being Sweden, they knew that they could do so without ever having to fear punishment.
Of course, there was the predictable outrage, the expressions of surprise, followed by the usual promises of an investigation (to see whether a crime had been committed).
Those in the know will recall that when the electricity market was deregulated, it was primarily to give people a choice and promote lower prices. It was one of the arguments which was repeatedly used to impress foreigners, how liberal and open our electricity market is. Everybody has a choice.
It's bad enough that more than 60% of the cost of electricity is taxes. Now the energy companies are screwing over the Swedish people and everyone just sits around smiling and pretending that everything is just peachy.
What is surprising is that despite the recent events as reported in the media, no-one has drawn a parallel between the actions of the Swedish energy companies and those of the fallen energy giant Enron. What they have done is identical to what Enron did in California: reduce output so as to drive up the prices and make a killing on two fronts: firstly, from the customers themselves, and secondly, on the stock market, due to increased share prices.
Everyone here thought that the actions of the Enron corporation were despicable. Perhaps this is why no-one is willing to compare the two. Once again, a classic example of how people in Sweden persist in burying their heads in the sand rather than face unpalatable facts.
Will they ever wake up?
Of course, there was the predictable outrage, the expressions of surprise, followed by the usual promises of an investigation (to see whether a crime had been committed).
Those in the know will recall that when the electricity market was deregulated, it was primarily to give people a choice and promote lower prices. It was one of the arguments which was repeatedly used to impress foreigners, how liberal and open our electricity market is. Everybody has a choice.
It's bad enough that more than 60% of the cost of electricity is taxes. Now the energy companies are screwing over the Swedish people and everyone just sits around smiling and pretending that everything is just peachy.
What is surprising is that despite the recent events as reported in the media, no-one has drawn a parallel between the actions of the Swedish energy companies and those of the fallen energy giant Enron. What they have done is identical to what Enron did in California: reduce output so as to drive up the prices and make a killing on two fronts: firstly, from the customers themselves, and secondly, on the stock market, due to increased share prices.
Everyone here thought that the actions of the Enron corporation were despicable. Perhaps this is why no-one is willing to compare the two. Once again, a classic example of how people in Sweden persist in burying their heads in the sand rather than face unpalatable facts.
Will they ever wake up?
posted by Adolf R | 23:37
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