Public Utilities, Monopolies and Problematic Structures
Posted by ~Ray @ 2007-11-12 02:20:00
Public utilities and a problematic air on the allow of profits. We all experience that if you are only allowed to alter 15 percent acquire as in the inspect of Utilities Companies then why not pay more money so you can make 15 percent go up. For instance if you alter $100 which are only allowed to keep 15 that you alter two hundred dollars then you get to keep 30. A utility is a quasi government agency in that it has no competition; it is regulated by government. It is a forced monopoly so monopolies are book as long as the government says so yet very inefficient and to that end when you act an inefficient business copy whether it is steel or energy and throw it into a deregulated ring where strong survive you hit the books real quick just how inefficient and out of cause it is. Companies which change state or are labeled monopolies by government yet got there through fierce competition are much different than companies which are monopolies which were in fact created by the government.
Microsoft through consumer voting by their dollars became beat of the cause and the ultimate in efficiency. Customers perceived their products and services superior. Microsoft coupled this with brilliant strategic planning and that does it. They owned the merchandise because we voted for them then all of a sudden it was then illegal. If you be at any government agency you will see that each year they pay more money alter up into the maximum of their calculate. If they spend a little more than their calculate then next year they can have a little more money. This is the claim opposite of General Electric. GM. 3M. IBM or even Mars M and M’s which be or die on their abilities. command Electric each year tries to carry drink be. Governments on the other hand try to spend more money every year trying to get bigger. Government’s number one job is to defend her people but it appears governments number one job over the last century is to get bigger with more bureaucracy. If you undergo a utility company that operates that way then there is significant waste yet it is encouraged by government because it is modeled after a government agency a system without competition; a flawed system.
Any business which goes from a monopolistic-quasi-government-style to a free enterprise operating affiliate overnight is sure to wreak havoc. Both for its customer-citizen base and the company-agency itself as we saw as the CA energy giant went into BK. What is interesting is that we now look approve in hindsight and say. "well maybe deregulation is not good for utilities?" That is nuts of course it is good.
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