Suarezn, we seem to be on the same page so far. Some points to expand:
-The mixed ownership was, to me, a two-way street. I think the private investors profitted in a weird way from becoming partners with the government. If the shares had gone 100% to the private sector, then the government would have been cleared of all problems. The incoming companies would have had to face the huge amount of non-paying customers (30% to 60%, according to various sources). Instead, by keeping the government in the loop, they get subsidies and a lot of political clout that helped overcome some obstacles. The government, in turn, kept a source of income, and some decision making capabilities that are handy when you negotiate deals for new infrastructure (politics are everywhere). For example: AES is selling its distribution. I bet this government is going to be stupid enough to buy the shares. How about if the government had sold its shares first? Then AES would be a bankrupt company, but then again, it's bankrupting all over the world. The government should not, under any circumstance, buy that half from AES. Let AES run around the world for some buyer. Give the israelis a chance "to fix this problem in 6 months".
-Half-assed privatisation wasn't the only thing that killed it for us in DR. Like samian says, this scheme was applied in many countries. This island is too small to recreate "Free market" schemes. If a chunk of land as big California suffered oligopolistic tactics by the generators, where does that leave us? While I am not opposed to the idea of privatising said industries, the schemes fail in advanced and developing countries alike.
-If I remember correctly, the B?varo company runs its grid, and there is no pool of generation. Ironically, and much like the case of Codetel until the 80s, monopolies can offer good services (although Codetel shysted this country in long distance fees until Tricom showed up). The answer in this riddle does not lie in the government, nor the laws. In that article I read over a year ago, the B?varo company boasted of collecting 99% of its debts. That's why Codetel offered good quality for over 70 years, while CDE was in the mud. I have come to take pride in the fact that I don't steal energy, bribe officials, rig my power meter, or tap into the house of a General for power. I pay my bills, and I don't contribute to a ruinous industry by stealing a share. It's a grain of sand, but it counts. If the electric bill rises high enough to orbit the Earth, alternative energy will automatically become viable and I'll move on to a cleaner source of energy, by *force*.
-I agree that the government should honor whatever debts it has with private investors. However, as I said above, honoring private debts isn't the same as bailing investors out. The government should not buy AES share, because the real buyer is the State. The part of the State that *I* own should not have to carry the burden belonging to those who don't pay their bills, or who benefitted from fraudulent sales. If AES is in a hurry to sell its shares, they can sell them at rock-bottom prices, or try their luck in the world-market. All I hope is that after such a thing happens, the goverment starts to show the same will-power towards its citizens that contributed in making this problem. This is a key issue for me: The government is just the face of all of us. If we keep running our industry into the ground, and if our government contains corrupt members who make it harder for us, then all of us suffer. Of course this would never happen with phone services, because you can cut a person's service from the Central switches, while electricity runs like water through the lines. It's not an addressed signal.
