Senior decision-makers come together to connect around strategies and business trends affecting utilities.

Post

Inflection point

Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

  • Member since 2003
  • 2,027 items added with 1,187,308 views
  • May 22, 2022
  • 124 views

Inflection point

The world situation points to a new scale of relative prices as a result of the inflation that contaminated the economies around the globe. 

There is one worrying aspect. The issuance of paper money. Governments issue more money and thus "face" the general increase in costs.

Evidently, this solution is the easiest in the short term and the one that causes the most damage in the medium/long terms with growing poverty and economic recession.

The alternative that would be desirable in the short term points to a severe reduction in the costs of the public sector that is paid for with taxpayers' money. To balance the budget and make possible a resumption that would maintain the purchasing power of the population.

But, unfortunately, the prevailing thinking is linked to the very short term. And turning the crank of money printing is irresistible.

The challenge in the electric power sectors around the globe might be how does this "money printing" situation will affect regulated rates and deregulated power prices?

This question will gain importance in robust decision making processes.

And so we move towards a potential disruption. And the most challenging: there will probably be no control that brings security and predictability, so necessary for humanity.

Are you preparing for this scenario?

Rafael Herzberg's picture
Thank Rafael for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member
Discussions
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »