Beware of the Unhealthy Growth of Independent Power Producer

Independent Power Producer

As an entity, independent power producer  plays an important role in generating power outside the public electric utility. A single power producer capable to decrease public electric utility’s burden by suffice its own electricity power need. In fact, its excess power can be distributed to others in need of power. Towards a greener future, most independent power producers today has built eco-friendly generator to generate power. They also encourage other companies to do the same action by saving the environment while generating and using power. Being independent also gives another benefit. These power producers can operate anywhere, even at the most remote location. Obviously, their power can help people in the remote area to get electricity.

Regardless of those positive effects by independent power producer, there are also negative sides which come along with the growth of independent power producers or private producers. According to a report by Public Services International Research Unit from University of Greenwich, United Kingdom, they found out that several problems occurred and will soon be a major problem for government and society. Stated in the report, independent power producers are not a source of funds for government. Many people thought that independent power producers are investment in electricity, but in fact, when private producers contribute more power than public utility for the country, government will eventually pay for power that is generated by private producers.

Another problem is the price. Most independent power producers are uncompetitive and inflexible due to their private rights. They can play price at any level they want and become problems for society. For example, in a remote area, a private power producer can sell power at the highest price and people cannot say no because they have no option. Besides that, excess power from conventional electric generator will be hazardous issue because independent power producers produce unused electricity by sacrificing the precious fossil energy.

Therefore, we need to reconsider about letting independent power producer grows significantly. A green light is available to private producers which use renewable resources, but warning should be given to those who use fossil resources. Moreover, a thorough consideration must be made by the government to maintain the balance of power, economy, even politics behind the existence of independent power producer.


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