Newfoundland and Labrador Hydro under Privatization attack again!

Over the next few days and weeks we will see who is Emera and what are they after. the same people who wanted to privatize Newfoundland and Labrador Hydro before have started again using a different strategy.

What was Danny Williams position on the privatization of hydro the last go round?
Where is he now?

During the privatization of utilities fiasco over a decade age - Nova Scotia unlike newfoundland and Labrador, Quebec, BC, and New Brunswick - Nova Scotia Power did the deal and created EMERA. Please read the commentary below by a NUPGE rep.

Nova Scotia Power - Emera the latest privatization nightmare

One disaster after another since utility was sold 12 years ago

Halifax - Need another privatization nightmare? Try Nova Scotia Power Inc.

Privatized by provincial politicians 12 years ago amid promises of better, cheaper and more reliable service, the utility has presided over one disaster after another since then.



The latest occurred this past weekend when more than 100,000 residents (in a province with fewer than one million people) were plunged into cold and darkness by an early winter storm.

Predictably, the utility was swamped with thousands of calls from alarmed residents. But because it lacked the staff to handle all the inquiries, NSPI came up with an ingenious response. It posted a message instructing customers to stop calling.

“Other utilities seem to be able to operate successful customer inquiry lines during time of emergency," said Halifax Mayor Peter Kelly. "What’s wrong with Nova Scotia Power? This wasn’t the first time they stopped answering phones.”

Towers collapsed

The snowfall, although wet and early in the season, was not all that unusual, according to Environment Canada. Yet 12 of the utility’s transmission towers collapsed, raising questions about the general state of the company's infrastructure.

Five days later thousands of Nova Scotians are still without power and it may be days yet before all the lights are on again. The situation has many residents asking why the utility was privatized in the first place.

NSPI is now owned by a company called Emera Inc. that operates across the northeastern United States and Canada. A week before the latest storm, Emera reported third-quarter profits of $22 million, more than double the level a year earlier.

But while Emera's profits are moving north, it's service is sliding decidedly south. The company now employs one third fewer linemen than when it was first privatized and, to add insult to injury, it is asking the province to approve a 14% rate increase.

Failed to correct weaknesses

Nova Scotians are especially angry because NSPI has failed repeatedly to correct communications and structural weaknesses exposed by past emergencies, most notably during Hurricane Juan and its winter sequel, White Juan, in the last year.

Even radio talk show hosts, and newspaper editorial writers, normally unshakeable apologists for the private sector, have turned on the company with a vengeance.

"Most residents of this province now consider Nova Scotia Power customer service to be an oxymoron," wrote John McLeod, a former business editor of the Halifax Daily News.

"The power company’s customers had every right to believe that the lack of information they suffered through in (last year) would not happen again. But happen it did — in spades.

Ruined its reputation

"Already under stern criticism for being poor communicators by the Nova Scotia Utility and Review Board ... NSP further ruined its own reputation by telling customers in the middle of this latest storm not to bother calling about power failures," MacLeod wrote.

"Don’t call when Nannie is sitting in the old family home on the South Shore wrapped in her winter coat and unable to make herself even a cup of tea?" he asked incredulously. "Or when your sister and her four kids are wrapped in blankets in Dartmouth, unable to get anything to eat other than some leftovers and the fruit on the kitchen countertop?"

Robin Carter of Dartmouth, in a letter to the editor, called the storm "a joke."

"What is going to happen when we get a real storm? We know NSP is useless. I can't afford another blackout. It's not a joke when the power goes off. Who do we ask for help?"

Self-serving propaganda

For it's part, Nova Scotia Power has responded with the kind of self-serving propaganda that consumers have heard all too often in an era of corporate scandals involving the likes of Enron, Arthur Andersen, Conrad Black and Nortel Networks.

"Community Restoration Underway," said an NSP headline this week. "Nova Scotia Power continues to thank all of its customers for their patience and understanding in the aftermath of the storm."

Provincial NDP Leader Darrell Dexter spoke for many when he said glossing over the utility's shortcomings was like "putting lipstick on a pig."

When privatization occurred in 1992, Nova Scotia Power promised solemnly that no layoffs would result. Within three months, the first round of job cuts took place and three other waves of layoffs have occurred since that time.

Only Emera wins

What's clear in retrospect is that the only winner privatization has produced is Emera Inc.
The company's revenue grew 22% to $951 million for its last full fiscal year and it reported proudly to shareholders that employee levels had declined 7.7% for the year.