>>41593
Corporations by law are run for the owners/shareholders best interest, that's their objective - maximise shareholder wealth. That's the root of problems with private utilities. SOEs aren't bound by that restriction, they can act for different objectives in primacy.
The transmission company for South Australia (SA Power Networks) will act in the best interests of its majority shareholder, 長江基建集團有限公司. The company/directors will not act in the best interests of the public, unless they align with those of the shareholders, or there is pressure/force or incentive to.
That's just the transmission company- you also have the generators and retailers. Each of those is a company with a board of directors and shareholders. The cost of management overhead for gen + transmission + retailer, as compared to a SOE with a slimmer governance is significant -and add shareholder dividends on top of that…
additional problems:
-private utilities bring into play "the market". This won't be a free market, utilities are prone to imperfect competition or worse.
-little incentive to maintain or create infrastructure above the level required tolerated by the end user - especially the unprofitable end-user. In the context of Aus this means that the owner of our wholesale telephone network can jew over customers with no plan to refresh aging infrastructure. EXCEPTION: where the government can be rorted i.e. there are advantages to doing so (as there are in power transmission due to the legislative environment)
-just the generaly jewry that an electricity retailer is
-no efficiency gains from dat vertical integration (kinda covered that previously when talking about overheads)
-a state-owned elec transmission company would (probably) not waste money sponsoring an arts festival. (essentially, private companies have greater marketing overheads than SOE)
>>41614
>the reason
10 points. See graph. Contributor but by no means a major factor.
better answers:
"massive state grid with fuck all in it" - 40 points
"privatisation", "jews", "CHINESE BASTARDS" - all 100 points