Prepa’s Privatization Lacks Transparency

The possible privatization of Puerto Rico’s electrical utility is being debated in the U.S. Congress. The largest creditor of the Puerto Rico Electric Power Authority (PREPA), National Public Finance, says that regulations for the privatization of the bankrupt utility “lack transparency, required PREPA to compensate ‘unsuccessful proponents’ and limit the role of the Puerto Rico Energy Bureau (PREB), the energy sector’s regulator.” But the Unión de Trabajadores de la Industria Eléctrica y Riego has suggested the appointment of an inspector general as alternative to a receiver. “Under UTIER's suggestion, the inspector general would monitor, audit, and investigate the authority’s activities. It would cover personnel practices and hiring regulations, procurements, fiscal and accounting issues, capital and energy planning, and regulatory oversight. (…) ‘PREPA has a compliance problem,’ the union said in its motion. ‘PREPA does not need an entity that comes to enact new rules. It needs an entity that enforces them.’”

Published on

Feb 22, 2019




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