It’s a long time since the water , electricity , gas and other services were privatised. It was an idea sold to the masses by stressing the ‘competition’ aspect of companies vying for custom that would create lower prices for the consumer. It was a blatant lie , just like most other government statements. Furthermore the UK water system was hardly sold off at all:
The Act gave them exclusive 25-year concessions for sanitation and water supply, protecting them against any possibility of competition. This created private monopolies. The Government took a number of steps to boost the profitability of these companies. It wrote off the all the debts of the water companies before privatisation, worth over £5 billion. In addition, they were given a ‘green dowry’ of £1.6 billion. The government also offered the companies for sale at a substantial discount, 22 per cent less than their market value. A very generous pricing regime was established, and the companies were given special exemption from paying taxes on profits.
I wonder how much ‘profit’ was left for the taxpayer once that lot was initiated. There is also the employees that were made redundant on top of this Dick Turpin style robbery. These new water companies swung the axe once they had taken over and reduced staff significantly to keep the ‘shareholders’ content.
In the last few days , virtually all the energy suppliers in the UK have put there prices up by a margin much larger than the general rate of inflation. Any companies that have not increased prices are holding to their promise of not increasing prices in 2012. However , come the first of January we all know what will happen.