How can deregulation be made to work for everyone concerned?

Question

How to effectively deregulate utilities like telecoms and energy companies while still be able to give consumers effective choices.

Answer 1

It has been experienced that in the case of public utilities/services, neither total control nor complete deregulation works in the larger interest of the users/consumers.A judicious mix of both is required as at most of the times the interests of service providers and consumers are at variance with each other.Where ever consumer participation is more active,the standard of services has been found to improve proportionally.

Answer 2

Deregulation can be very hard once the government has already set up a monopoly. One big problem has been with the government partially deregulating industries, which leads to greater problems.

The Cato Institute has some good reading material on the issue. Check the article I included in the link. (Make sure you scroll down a bit to get to the right article)

Answer 3

So.Ca. Edison has added rate increases every two months for about the last year. They are now going to the P.U.C and ask for a 14.8% increase to "insure" the dividends of stock holders. There have been increases to provide light bulbs for low income, increases for Bark Beetle eradication and every conceivable thing they can come up with. I pay nearly $400 a month deliverly charge before I even turn on a light. Some of the folks here have electric bills that are more than their mortages. This is all due to former, recalled, Gov. Gray Davis who just so happened to take hundreds of thousands in contributions from Edison. It would be cheaper here to run your own generator 24 hours a day.

Answer 4

Uh, they've already been deregulated and it's been a disaster. Prices have soared and service has tanked. If anything, they need to bring the regulation back. I remember when they deregulated cable how they told us competition would lower prices. My bill has tripled since then and I have the fewer channels. And don't get me started on the airlines.

Answer 5

Business has only one aim and that is to increase profits. If you deregulate them you will have soaring prices and a reduction in service standards. It works every time.