British utility renationalisation debated amid PM change
8 reported
A discussion about renationalising British utilities has emerged with a pending change in prime minister, according to a single-source report. The source notes that not all privatisations went well and that American data indicate state-owned utilities do not appear very economically different from or less efficient than privately-owned utilities, particularly for water where natural monopoly elements are strong. However, the source argues that massive restructuring will be needed to make all utility companies “AI companies,” requiring capital raises and pay scales difficult for the public sector to achieve. The source concludes that renationalisation would be a mistake at this time and that returns to resource mobility will be rising significantly.
What’s reported
There is talk of renationalising British utilities with the pending change in prime minister.
Not all privatisations went well.
American data indicate state-owned utilities do not seem very economically different than, or less efficient than, privately-owned utilities.
Natural monopoly elements are especially strong for water.
Massive restructuring will be needed to make all utility companies “AI companies.”
That restructuring will require capital raises and pay scales difficult for the public sector to achieve.
The source states renationalisation would be a mistake right now.
The source says returns to resource mobility will be rising significantly.
Sources: marginalrevolution.com
