On September 4, 1882, Edison illuminating company launched the first electrical generation. Today large power plants are heirs of this modest station, located on Pearl Street in Manhattan that, powered by coal, supplied power to 400 bulbs from a total of 82 customers.
In the mid-20th century was admitted as certain that the electricity service was a natural monopoly, which only could run with few providers to get adequate pay for large investments required in generation and grid. So, vertically integrated companies from production, transmission, distribution and sale of electricity, mostly in public hands, were created. The faith in the market as optimal resources organizer, materialized in legislation which in the 1990s tried to introduce competition in that market. The way to achieve it was to privatize entirely, as in Spain, or partly, as in France, those utilities. Competition was only limitedly reached and settled on these foundations, their business model has generated continuous and abundant benefits to its shareholders that have been accompanied, generally speaking, with improvements in the service’ quality even not always synchronized at the same time. Read the rest of this entry »