Long Term Solution Needed On Utility Prices

Posted on: 30/10/2013

All those years ago when Governments started to sell off UK Utilities, the dangers were easy to see.

Wanting the money from the sales and to be free of potential Trade Union action, it all seemed perfect from the Governments viewpoint.Short term gains were the order of the day.

The problem of course is that the Public-you and me-have to use the Utilities every day of our lives.We breath ; we drink water; we flush toilets;we use power-from the moment we wake up until we fall asleep, 16 hours later.

When one combines the necessity of use with the limited/nonexistent competition,the opportunity for super-profits is glaringly obvious.

Lets be clear.There is nothing wrong with making profits.Businesses need profits to survive and grow.However,when competition and other market forces are inadequate to keep price increases "reasonable", regulatory intervention may be necessary.

Difficulties are legion eg what is "reasonable"? That is why Ed Miliband has suggested only a 20 month energy price freeze, to allow the newly-elected Government to develop a fresh regulatory framework.

Leaving matters as they are is not an option.All politicians know that.Frankly,I don't care which Government makes the necessary changes,just so long as the changes are made soon.

Any politician who argues nothing needs to be done, that "supply and demand" will keep prices reasonable,is simply announcing that getting elected in 2015 is of no interest to them.


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