Privatization in Britain brings winners, losers

Article Abstract:

The privatization of the natural gas industry in Britain, which began with the sale of British Gas (BG) in 1986, has generally benefitted large users and at the same time kept the prices low due to competition. The low price is likely due to a general fall in oil price, which started in the 1980s. The gas industry has generally shifted charges from large to small users as large users have greater choice, since they can always negotiate prices with the various suppliers. With industry being lightly regulated, BG has opportunities to move some costs to small consumers to meet new challenges.