Quote:
Originally Posted by jtwn
If the government actually cared, it could set up its own operation that sells energy at a price where it only makes a marginal profit on the market price it buys at.
|
The problem there being that the "company" would basically be run by political expediency rather than market needs. For example, say the government decide to be "green" and stop the New Electricity Board from buying supplies from coal and nuclear power stations. Prices would go through the roof, and if you disagreed with that what options do you have? None, aside from buying your own generator.
Also, that "marginal profit" wouldn't pay for network upgrades and the like, and if it were in any way substantial the government would simply "divert" it to more "worthy" causes (insert your own pet peeve here). It boils down to this, do you think that politicians can be trusted to keep the lights on?
That's not to say not-for-profit utilities can't work, Welsh Water is run on a not-for-profit basis, but is not government controlled. Of course it does have the benefit of being in an industry where competition is non-existent, so they can't really fail to make things work.