Changes in utilities

Interesting report today. Correa says that gas (for stoves) will be going from $2 per tank (lasts about a month) to $15 in 2016. While not that much for expats, a real burden to the poor. Correra suggests that the government will be promoting the availability of electric stoves (never seen one here). Electric stoves could be a headache. There has been more than once that we lost electricity in the middle of cooking a dinner. Electricity doesn't come in tanks that can be easily switched. Also a 120 volt stove maxes out at 1500 watts, not exactly ideal for cooking a big meal.

This coincides with a report I haven't seen but the family I live with has been talking about: that Correa wants to switch electrical distribution from 120 to 220 volts. I am lost on this one. The cost of conversion would be enormous; think of all the transformers that would have to be replaced or upgraded. Surely not just so we can have 220 volt stoves. Not sure of the motivation; anyone know?

Hey joe Tim here, I think we'll find the 220/60 conversion is aimed primarily at the industrial base which Quito wants to desperately increase for a number of trade and employment reasons. I.E. welders and heavy machinery requiring media muscle along the electrical, hydraulic and pneumatic lines. All require 220 and in some cases 440. Households will use the 220 lines for clothes driers if they use one at all.
Not to worried about that. As for the propane $15 dollar issue? I think the palace guard will intervene and common sense will prevail. As you point out the common folks can't hack the hit from the deuce to the 15 buck level. Otherwise the Bastille come to mind and we all know about Marie and her head. Correa if he's behind this and I stress if it even is a topic for him will either smarten up like most politicians or he'll go the way of all the other smart guys who get to big for their shoes and lose their footing and position in government.
Let's see if this issue bears fruit and watch those around him who begin to distance themselves from him if he's really behindd this. He'll never get re-elected and there's always another wanting his job
He'll back off.
Another thought, Ecuador is a significant oil producer. To get oil you need to pass through the natural gas barriers which most industrial nations capture. For all these reasons I doubt this ever comes to fruition.

Hey Joe, Tim again. I just read the copy you referenced and to some degree I think he's posturing with heavy numbers up front to get the lower numbers he really wants from oil and gas consumption.

By the end game these numbers will be diluted with raises on Gas probably in the .25-40 cent per gallon area and propane seeing a $ 2 buck per tank hit still roughly a 100 %b increase but with everyone hearing 15 bucks they'll applaud a 2 dollar raise. same with gas and diesel. Political posturing at it's best.
Haven't we seen this before at home?

Politicians, you gotta love em NOT! Remember what they say about them, if their lips are moving they're lieing

Tim,

I don't know how you do it, but your comments always make me chuckle. I wondered the same thing. Knowing how tolerant Ecuadorians are, but also how quickly they can act when the have had enough, I can see how Correa might become Ecuador's headless horseman. Still, with the cost in Peru being about the same as the hike, and over $20 in Columbia, prices will have to rise some.,

Really appreciate the heads up on the 220 conversion. That made no sense to me, but your explanation makes perfect sense. It sounds like a smart move, and might be valuable to support the silicon valley area being planed near Quito (forgot what it is called). In many ways, Correa has been creating a vision for modernizing Ecuador. Good for him, but not so good on the hike.

Joseph,

I'm just as lost, but recall a conversation with an Irish electrician about the advantage of 220 systems (most of Europe).  He said it transmits more efficiently than 110, thus giving one the choice of either saving power or allowing the use of smaller, cheaper wire.  Additionally, I have the (vague) impression transformers will "step down" or "step up" voltage depending on how they're hooked up, so there may not be any need to upgrade them.  Hmm, I bet it's time to see what Mr. Google has to say on the subject.

John

LeftClique wrote:

Hmm, I bet it's time to see what Mr. Google has to say on the subject.


LOL,

I tell you, that Mr. Google is one smart dude. Even smarter than my calculus teacher. All kidding aside, as far as pole transformers which reduce 220  to 120, and are numerous, the reduction would not be needed. So, yep, you are right about that. But Tim did clarify the issue saying that this would only happen in the areas for manufacturing. So now, it makes sense to me.

Joseph, at first blush I thought Correa was another typical bureaucrat with lots of bluster but after watching his maneuvering of the USA with regards to the trade agreements, Joe Biden's good guy intervention, the breach of the OAS drug agreement and a growing list of progressive movements, I'm sure Correa has a plan to make Ecuador the leader in the overall SA economy. Based on his finance & business education at Illinois he understands and recognizes based on existing other country models that the fastest way to achieve such an ambitious plan is through playing a major role in the communication and information networks. Thus the industrial area you described in the Quito area. From what I've heard the way they're laying out the flow of the area appears to be very much like what they call the Triangle area in the Raleigh Durham area of the Carolina's where there are scads of companies dedicated to development in the Chip industries. NC State, Duke and a bunch of others are like a minor league system for the Triangles personnel development program. Last week Ecuador's Interior and education Minister announced a large budget for 50 new " technical" campuses with one intent to graduate design development engineers. Kind of cool to watch a sovereign nation being born into the growth upper business sector. Lets see what develops here.
Tim

Tim,

I can't tell you how much I appreciate this information. A while back, BobH posted a story about recruiting professors from Spain. The salary was such a high range, I found it almost impossible to imagine that salary for an ordinary professor and thought something was missing in this story. It was. If this is associated with the "Silicon Valley" project, then it makes sense. My apologies to BobH and all the others who discussed this.

I have had some problems with Correa's temper and his disrespect for some native people, but there is no doubt that he is a very smart man and has sincerely worked towards positioning Ecuador for the future.

"Kind of cool to watch a sovereign nation being born into the growth upper business sector. Lets see what develops here." I could not agree more with your words and appreciate your insight. I think Ecuador will be a good place to be and really blossoming in about ten years. I have asked people here in Loja what they think about Correa's future. There are mixed feelings, but most said there would not be surprised if he manages to stay around for a while. That is probably a good thing.

Always a pleasure Joe.
Tim

Good discussion of the issue, thank you ...  Sounds like you've boiled it down to the core issue of the Quito industrialization/digitalization objectives.

Might Pres. Correa couple an increase in the residential gas pricing with a hike in the minimum wage in order to blunt the effect on the most vulnerable?  That might help him sell the change in gas prices to the public.  It might also dovetail with potentially increased industrial demand for the gas in the new Silicon Valley ...

   Carlos   aka "ElGringoBueno"

PS  I agree that a "bird's eye view" of Ec's transformation into an economic leader in SA would be interesting.  However, I can only hope that the "people" of Ec benefit from this transformation and not just the pocketbooks of the wealthy and their "army of agents".  I'm coming to Ecuador to rid myself of the insane power of wealth and "media" in the socially and morally declining US of A.  I read recently that Pres. Correa presently enjoys a 75% to 80% positive rating from the citizenry and so, even if he isn't/can't be re-elected again, I would expect a "protege of his policies" to succeed him and my hope is that the populace continues to be lifted up economically.

PPS  BTW, while I don't consider myself a moralist, at some point, even I draw the line ...