2021 | OriginalPaper | Chapter
5. Privatization of Public Utilities: Results from the UK Experiment
Published in:
Privatization of Public City Gas Utilities
Abstract
Privatization was the tide of policymaking in major developed countries of the world from the 1980s onward. The United Kingdom (UK) was a pioneer in its continuous privatization of all public utilities and the introduction of clever schemes, such as unbundling, the power pool, franchising, concessions, and mutualization. These devices extended worldwide as methods of undertaking the institutional reform of public utilities. This chapter principally analyzes UK public utilities reform in electricity, water, railways, airports, and postal services. In practice, the performance of utilities reform could be improved by increasing the number of new entrants and diversifying services. However, the traditional concept of a “universal service” has deteriorated in some markets. Even if the ownership of privatized utilities is transferred to foreign companies, management levels should be monitored by the independent regulatory authorities to maintain transparency.
