Outline the merits and demerits of privatization?

Answer 1

Privatisation puts the utility's in the hands of private company's in theory this means that they will be run more efficiently. in reality this is the truth. However while it was in public hands efficiency meant that people would receive enough power when they needed it art a certain price. The private model sees efficiency as delivering a profit to share holders regardless of the quality of the service delivered to consumers. They can get away with this because there is only one set of power lines on the street. The advantage in privatisation is that the politicians that sell utility's are able to spend the infrastructure on short term project to make them selves look good.