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LEGISLATION: United Kingdom Fine Tunes Its Privatized Utilities

Published Thursday, June 01, 1995

With the arrival in Washington of free-economy Republicans, pressure to turn over traditional government functions, including waste management, to the private sector has gained momentum. Still, the tantalizing lure of less government, coupled with the assumption that private-sector management automatically produces cost-efficient operations, deserves close examination. For example, consider Britain's utilities-privatization effort, which is beginning to show its flaws. Rising stock prices and the large salaries of utility executives have sparked a privatization backlash. Lawmakers are now asking managers angry questions about their bonuses, and consumers want to know why bills are soaring while company profits are better ...

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