What was the point of taking the energy companies out of public hands?

Question

I always thought that British Gas etc were sold off to encourage competition and reduce prices for households. I can't remember seeing the ridiculous price hikes that we see now.

I realise there were a few strike problems in the past, but that affected everything.

So what was the point?

Answer 1

So they could make huge Private Profits at our expense (and it worked !! lol).

Answer 2

Competition probably has helped to keep prices down although it's hard to appreciate that when world oil prices have just doubled.  The main reason they were sold off was to generate revenue so the government of the day could keep down the headline rate of tax.  If you sow the wind, you will reap the whirlwind.

Answer 3

My solution was to purchase the stocks of the energy companies and reap the benefits. Why does not everyone else do this? They are after all publicly owned companies still are they not? Is this not better than state owned? After working for contracts a few years for government and seeing the pure waste I don't even know how they can run a day care let alone a country.

Answer 4

It was part of the Thatcherite ideal - a share holding democary. As you say, the idea was that competition would ensure efficiency and keep prices low.

Ha!

Answer 5

The main point was for Tory rich people to invest in the companies as share holders and cream ALL the profit into their bank accounts, whilst the poorer people struggled to pay their bills due to ever increasing prices.

Answer 6

it was maggie, wasn't it? she had a warped sense of humour which has messed up a lot of people's lives - she introduced the privatisation and the yuppie and the debt culture...and the country has never recovered - i suggest we set fire to the houses of parliament to keep warm, we could meet there at 6. Actually no, we couldn't, cos the trains never run on time and the petrol is too expensive....

Answer 7

British Gas was privatised in 1986.I wonder whether turning the clock back over 40 really can be the answer to current energy prices. Governments are not usually very good at running businesses.Look at how massive and succesful BT has become since it stopped being the part of the Post Office.More to the point would gas be any cheaper if it had not been nationalised ?

Answer 8

I totally agree with you. Renationalise the utility companies now, with compensation only for those who need the money.