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Energy Sector Reports Higher Earnings |
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The good news is the energy distributors increased their revenues over the last two and a half years. The bad news is it wasn't from improved performance or collections but rather rate increases. A report issued by the Government's Electrical Sector Recovery Plan shows that the distributors (Edenorte, Edesur and EdeEste) increased their monthly collections from US$45 million per month in 2004 to US$75 million per month currently. This is a 66.6% increase. However, in 2004 the average kilowatt hour rate was US$0.12 in 2004 and but has risen to an average US$0.20 today. Coincidentally that is also a 66.6% increase proving that any revenue improvement comes from the higher cost of electricity rather than improved billing practice.
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