Thursday, October 7, 2010

Soaring utility bills - who benefits?

The Herald Sun reported this today: ".... typical households are paying a staggering $900 more for the essentials compared with 2005."

I used to think that the government is being negligent for allowing utility companies to raise charges year after year, far greater than the annual inflation rate. It appears at first glance that the privatized electricity, water, gas, and telecom companies are gouging the public as much as they can and pretty much getting away with it. Why is it that the government is allowing this free ride?

Perhaps there is a good reason for this laissez faire attitude. When the utility companies reap in a bonanza in extra profits, the government also gains a windfall of extra tax dollars. The government does not get cop a blame from the public. Instead, the utility companies get blamed, but they don't seem to care. After all, EVERY other utility companies are doing the same. Perhaps this is the reason why the government is silent about utility hikes.

1 comment:

Anonymous said...

1 word "TAXES" revenue!