Today, price formation is understood as the result of the social and political forces operating within the market field. Ideally, as an "equilibrium" between demand and supply. The dominant narrative suggests that prices are given by somehow anonymous markets.
Wherever the price-formation is taken "into the hands of those affected", and the so called market-price is being ignored (at best) so that price formation is based on the simple question: What do we actually need to produce and dignify our lifes?, price-sovereignty is at work.
# Features of Price-Sovereignty
# Examples
Picture an environment in which corruption is rampant, provisioning for basic needs is more than inefficient and violence is on the daily agenda: it's Venezuela in 2017. In such a context Cecosesola continues ignoring the "price mecanism" and asks the producers: What do you need for production. Then calculations are made - in the open and together. A price is fixed and then converted into an averages price for everything, a kind of food-flatrate. Cecosesola feeds (NEW NUMBERS IN THEIR REPORT) and it's impact is so high that even market prices lower (in comparision to ohter Federal States)
Municipal Water Supply : only charged for operating expenses plus a minimum nominal flat, which is close to the Cecosesola model.