Wednesday, 17 October 2012

Fact #5 - State run utilities are just as expensive

In the UK there is a lot of grumbling around whether or not the formally state owned utilities should have ever been privatised.  "Run for people, not profits" is the familiar battle cry.

Well, Australia still has some state owned utilities - NSW electricity for example.  From the what I read in the news, they are just as badly managed and the states are addicted to the revenue that they generate.  To the point where double digit price hikes are common - to the extent where Julia Gillard has threatened to use the "big stick of regulation" if the states don't reduce electricty prices.

It seems that in either system the consumer gets screwed.