Mr Theophanous claims (13/3) that "during the UK privatisation process" there were significant increases in UK electricity prices when they should have been falling. He appears to be referring to the 1988-1991 period.
However, figures just supplied to me by the UK Treasury show that real domestic electricity prices in the UK in the third quarter of 1994 were 9.4 per cent lower than the average for 1991-92 and 2.9 per cent lower than the trough reached in the 1980s. These are from the series published by the UK Department of Trade and Industry, which goes back to 1979-80.
It is correct that real UK electricity prices should have fallen by more. However, to suggest that consumers were "cheated" is nonsense.
Apart from the fall in real prices, the average lost supply-time per customer has been more than halved and disconnections of customers for non-payment of electricity bills have fallen to a fraction of the pre-privatisation level.
Beyond that, both taxpayers and shareholders (who include a substantial proportion of "consumers") have benefited from the enormous increases in productivity as a result of the elimination of excess staffing and improved work practices.
Rapid changes are now occurring in the structure of the electricity industry worldwide which involve increasing exposure to private sector competition. Those who oppose privatisation are acting contrary to the public interest and to the welfare of the community generally.
This is the reason for concern at the opposition expressed by some sections of the Victorian religious community. Few would oppose the right of religious spokesmen to express a view: but it behooves those who do so to understand the implications of their views.
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