Are we paying the price for selling off the UK utility sector?
When you look at countries such as France, where the government have introduced specific laws to protect French utility companies from foreign ownership, the UK market has perhaps lacked the protection which sectors such as utilities demand. It was the Conservative government which brought about the privatisation of utility companies in the UK although nobody quite expected them to fall into the hands of foreign parents in such a short space of time.
While there are specific regulations and rules in place to protect UK consumers, there is no doubt that massive overseas conglomerates do not perhaps have the interests of UK consumers at heart. Indeed, over the last few years we have seen issues regarding gas supplies from Russia into Europe and on to the UK and there is no doubt the cost of all utilities has increased significantly since privatisation.
There is no point in blaming the current government for the predicament we are in, although there are critics who believe the government has no viable backup plan at the moment, because the Conservative party was behind the privatisation of the sector. The problem is that with the vast majority of UK utility companies now owned by overseas parents there is little likelihood of a return to UK ownership in the foreseeable future.
Share this..
Related stories
How can the UK run short of gas?
Despite the fact that the UK government has rushed to allay fears that UK gas supplies are in danger, we are set to see further companies suffer as prices continue to rise and supplies continue to fall. Only yesterday we saw 94 companies in the North West and Midlands have their gas supplies cut off due to a massive spike in the price of gas and ever growing concerns about Norwegian supplies. So h...
Read MoreWill Northumbrian Water be the next to fall foul to overseas prey?
Shares in Northumbrian Water increased by 12% today with speculation mounting about a possible offer by the company's largest shareholder, the Ontario Teachers Pension Plan. The pension fund already has a 27% stake in the business and is rumoured to be on the verge of announcing a £1.7 billion bid to take the company private. So is Northumbrian Water about to be the next UK utility company to fal...
Read MoreTeaching kids the value of money
There are many lessons which children learn in their early years which will set them up for their later years, but one which we should all consider is teaching children the value of money. If your child grows up with no understanding, or even worse a misunderstanding, of the value of money this could cause major problems in the medium to long term. Even though the education curricula in the UK has...
Read MoreOfgem highly critical of UK energy companies
Ofgem has this evening attacked UK energy companies suggesting that a lack of investment could see the UK short of energy supplies by 2020. In addition to the radical proposal to create a state owned company to acquire energy, which would then be distributed to UK energy users, Ofgem has finally admitted that the decade-old free-market approach in the energy industry is not working. It looks as...
Read MoreWould you dare haggle over the price of a new car?
Many people believe that the UK car industry will come down from the current high in 2010 and will effectively be open to haggling by consumers. The car scrappage scheme has given the sector a massive boost during 2009 but this has now ended and the sector is trying to make up for the impact which the scrappage scheme has had on new car sales. So would you dare haggle over the price of a new car?...
Read More