Best Posts in Thread: Rainfall 2017

It looks like the current price increases for electricity are in large part connected to mismanagement from the past. Apparently the country needed a lot of investments in new electricity generation plants in the 90's and 00's and instead of paying for those at that time, the money to build them was borrowed. The (government owned) Power Sector Assets and Liabilities Management Corp. PSALM (apparently a reference to doing things wrong with biblical proportions).
This year the government decided that rather than keep paying growing interest charges to the bankers, that debt needs to be paid down in 5 years. That's the explanation for a large part of the surcharge on our electric bill. It is quite cynical though, that past generation cost subsidies in the rates (the non paid-for new generation plants) are now suddenly charged to current customers in a short period (5 years is not the expected life of an electricity plant).
So, rather than being connected to general inflation, this increase is related to past and current mistakes in financial management.