Buffett knocks on the alarm bells for electricity companies – Big threat to fires

Big investor Warren Buffett warned about the company prospects, stressing that there are serious like fires and artificial intelligence. Since Buffett is a legend of investment, his views are received with caution by each branch of the economy. As the Financial Times reports, forest fires pose a major threat to electricity companies, since on the one hand they are often caused by pillars and on the other they destroy large sections of the network, causing significant financial damage. As climate change has intensified extreme weather phenomena and fires, these companies are called upon to strengthen their networks and make them more resistant. This usually involves subscribing them, but entails highly increased costs. Of course, costs worsen their economic position and necessarily pass to a greater or lesser extent on to consumers. This is a phenomenon that has been a major concern for Greece, which in recent years has experienced devastating fires on a large scale. Both IPTO, i.e. the transmission network operator and DEDIE in the distribution network, have included large investments in their plans for the rest of the decade. Undergrounding distribution lines are already evolving in many regions of the country with EUR 233 million from the Recovery Fund. Characteristic is that the cost per kilometre for underground lines is three to four times as high as air lines. If there was no European funding, then all the lines would need more than EUR 250 per consumer, a clearly ‘dump’ amount. In addition to undergroundization, administrators recruit drones and sensors to better monitor the network and to have better reflexes when problems occur. In this way, the two companies want to ensure the network and protect human lives and property and to convince investors and banks that they are doing the right thing.