[Marxism] Cuba's energy prices, random thoughts.

[dwalters@xxxxxxxxxxxx]

Just on the rates for electricity...some interesting aspects and questions come
to mind....I'm not drawing any conclusions (not rushing to condemn or defend
this decission).

1. There is no doubt that the production of electricity by burning fuel oil is
probably very inefficient, especially given how old Cuban power plants are. If
they are are like other Carribean countries, much of it is not even generated
from large, relatively more efficient thermal plants, but probably from diesel
electric generators, designed originally for deisel-electric locomotives. They
do this in places like Maui, rural parts of the US, etc. Of course, the Cubans
have no choice unless they developed very expensive LNG terminals, imported it
from Algeria or some place far away (it's not produced in the Western
Hemisphere to my knowledge), and then tooled up advanced gas turbine generator
technology. I just don't see that happening.

2. The rates that Castro cites have only "half-meaning" to me. I don't know what
the rates were *before* this increase even thought they were held to 1970s
levels according to the resolution he presented.

3. The rates are VERY high for Cubans, no matter how you cut the cake. 9 cents
(which is the same as US cents I presume since their currency is still
officially trade at 1 for 1 as far as I'm aware). Given the access many Cubans
still have for dollars, this could create a two-tiered electricity consumer
society out of Cubans, those who can trade dollars for pesos and thus will pay
little for power, those that don't. Maybe Cuba's recent elimination of the
dollar, officially, will have an effect on this, I don't know. The 9 cents is
just about average for what most Americans pay for power in the US. In
California, I pay 11 cents for the first 250 KWs of power a month, 14 cents
after that. If cosumption is similiar to the US use, then Cubans will be paying
a very large percentage of their small incomes to electricity. It will also
increase theft of power, a major problem in urban areas of Cuba. If rates were
charged this high to Americans using more than 300 kw of power, we wouldn't
have to wait long for a revolution here.

3. However, Cubans no doubt use far less electricity than Amercians do...from
the lack of PCs (300 to 300 watts an hour right there), big TVs and
refrigerators. So, I'd be interested in finding out what the average usage of
power is in Cuba. If this is the case, then the bill won't be so bad.

Just random thoughts on this.

David

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