Utility companies increasing their prices

[Bassman62]

And once you'd gained ownership of the companies, what did you do with them?

Did you look upon them as a worthwhile investment?

No. - You sold them to foreign companies so you could have some money to spend.

Rubbish again, we had no control because Tory Blair carried on where she left off.

We thought labour would redress the problems all we got was a closet Tory.

[Bassman62]

Originally Posted by Rupert_Baehr

Do you import gas through the interconnector at Bacton? How can Cameron (or anybody else in the UK) control the prices charged for imported gas?

The UK has imported gas since the 50s from North africa, it is nothing new, it used to arrive in three or four tankers in lquified form.

[Bassman62]

Do you import gas through the interconnector at Bacton? How can Cameron (or anybody else in the UK) control the prices charged for imported gas?.

British gas has made approx 27% profit yet its prices are going up 8%.

 

Regarding north sea oil and gas where did the rewards go to for that? I don't recall getting my bonus in the post, what I do recall is that when the North sea oil/gas fields were in full production (70s) the countries finances were in a right state with massive inflation.

[Rupert_Baehr]

Which the French State has a huge share of.

 

At one time, the British gvernment owned ALL of the UK's nuclear generating plants.

 

The UK's 8 most advanced nuclear generating plants were sold off in 1996. It appears that British investors weren't interested in buying them, so they were bought by EDF (a major French Electricity generating company)

 

Alistair, Darling [not Margaret Thatcher] sold it off the British Nuclear Group in 1996 (which became Sellafield Ltd) to a consortium of the US company URS, the British company AMEC, and AREVA of France.

 

(I don't understand how either BNFL or Sellafield Ltd could be limited companies. AFAIK, under English Law, the operators of a nuclear generating plant assume unlimited liability ... How can a limited company assume unlimited liability?)

 

IMO - particularly given the concept of 'unlimited liability' there is a very good argument for retaining ownership and operation of nuclear plants in government hands. All UK Nuclear plants are controlled by the Nuclear Directorate of the HSE (and are, of course, subject to IAEA oversight.)

 

I'm no expert on nationalisation of utilities, but there seems a brutality in profiteering off of a basic need.

 

Water and heat (which would include electricity and gas, since candles and log fires are no longer common) are indeed 'basic needs' but so are food, husing and clothing.

 

Do people who work in industries which provide food, housing and clothing work for no profit? - If not, why should water, gas and electricity be treated differently?

 

When Margaret Thatcher began the utility sell-off, the industries were offered for sale to the British people. She sold off the industries to provide money to spend on the British people. - At least they got something beside the money she spent on them - They got shares in (personal ownership of) the utility companies (Which was more than they would have got had she simply raised the money from taxes.)

 

Those who didn't buy shares did not own the utility companies - but neither did they have to pay increased taxes (which would've been the alternative.)

 

Keith Rich said: "...the profits go to the board of directors." That's simply not true. The profits go to the shareholders. Those shareholders were originally the British people (and British companies.) Subsequently, those shareholders sold off their shares.

 

Now they're complaining that somebody else is receiving the dividends?

 

Sounds like the 'ant and the cricket' again.

[Loubbe]

Water and heat (which would include electricity and gas, since candles and log fires are no longer common) are indeed 'basic needs' but so are food, husing and clothing.

 

Do people who work in industries which provide food, housing and clothing work for no profit? - If not, why should water, gas and electricity be treated differently?

 

I think the principle behind privatising utilities (or at least one of them) was that competition would increase efficiency and drive down prices. This has certainly been the case with clothing and food (not sure if housing would comply). This doesn't seem to be the case, however. In fact, if one puts their price up, the rest soon follow. None of the companies are sticking their neck out to try and be demonstrably cheaper than the other.

[anywebsite]

Do people who work in industries which provide food, housing and clothing work for no profit? - If not, why should water, gas and electricity be treated differently?

 

It is relatively easy to get into supplying food, housing & clothing, so it's a competitive market. If one manufacturer of baked beans decides to put their price up to £5 a can for no reason, you can buy the other brand that didn't. If you feel that everyone charges too much & makes too much profit, it's easy to set up your own business & cash in while bringing the prices down.

 

Supplying basic utilities is a natural monopoly, because of the massive overheads involved in building all the infrastructure. It's much more economically efficient to just have one gas pipe, one telephone line, one water pipe & one mains electricity supply, rather than having several companies all with their own infrastructure competing on price.

 

Private monopolies are very bad, they exist to extract as much money as they possibly can, unchecked by any thought of competition.

 

Public monopolies as less bad.

[Keith Rich]

What will people riot against? We don't have a dictatorship where people are shot for opposing it. We live in a country where people are fairly free to hold opinions and even to voice them. We don't live in a country where our sick and disabled are abandoned to beg on the streets - we may not give them enough to live in luxury, but we do have safety nets. We don't leave families with children to starve, not even those irresponsible ones who have children with no thought of paying for them.

 

I'm grateful I wasn't born in Libya, or Iran or any of the countries where democracy and equality isn't the norm. I've lived through better and worse times here, but never have I felt my way of life was threatened by a dictator. So I won't be rioting.

 

Now perhaps we can get this back to discussing the increase in water, gas and electricity prices!

 

You may not be. But lets just see what happens in the next few months/years.

[Bassman62]

Do people who work in industries which provide food, housing and clothing work for no profit? - If not, why should water, gas and electricity be treated differently?.

The genius was selling people something they already owned to provide cuts in the top level of taxes.

Jo public on a basic wage can hardly afford a substantial amount of shares compared to one of our bank directors.

[Bassman62]

Private monopolies are very bad, they exist to extract as much money as they possibly can, unchecked by any thought of competition.Public monopolies as less bad.

I worked for BT (PO) (GPO) which was making a vast profit for the public purse until maggie sold it.

What a genius selling the family silver for less than it was valued at.

[LaughingCow]

all those that voted thatcher and her greedy cronies into power in the 70s, they are the ones to blame. if it was still used as a nationalised thing, and the gas and leccy as well we would not be getting shafted at all. so all you that whinge about this, if you are your parents voted for mrs thatch i really do not sympathise

 

Right, so a generation voted for Thatcher, and if you happened to be related because they are your parents you're to blame too? Intelligent....

 

 

Prices are going up because things cost more. Fuel is more expensive and every company uses a certain amount of fuel in some way or another. People say that because they are providing a service to people they should use their profits to counteract losses. These people clearly have no idea what companies are set up for.