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Enron Mail |
---------------------- Forwarded by Steven J Kean/NA/Enron on 05/01/2001
07:35 AM --------------------------- John Sherriff@ECT 05/01/2001 02:15 AM To: Jackie Gentle/LON/ECT, Steven J Kean/NA/Enron, Richard Shapiro/NA/Enron@Enron, Fiona Grant/LON/ECT@ECT cc: Lauren Urquhart/LON/ECT Subject: Entry tax to dergulating markets The Forbes April 30, 2001 editorial piece "Slow Starters" on page 24 discusses the "entry tax" which is the capital burden for starting a new business. It states that rich countries on average have relatively low entry costs while poor countries have stagering entry costs caused by corruption, endless beuacracy, and cost of delays. These "entry hurdles" and asscoiated costs do not produce any tangible benefits for consumers, workers or the environment. We might want to make the analogy of "entry tax" for new deregulated gas & power markets. Things like negotiated third-party access (rather than regulated TPA) substantially slow the speed of new entrants and hence deter competition. Negotiated TPA creates uncertainty for new entrants (they never know what they are going to get) and clearly slows the new comers down. I will send you a copy of the Forbes piece. John
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