Those things are natural monopolies, so the choice isn’t monopoly vs free-market it’s profit-driven-monopoly vs public-good-driven-monopoly.
Unlike what’s said by the mindless pseudo-Economics bollocks a lot of prople have been indoctrinated with, the upsides for consumers of a Free Market only exist in the subset of markets were there are natural conditions for high levels of competition - which is most definitelly not gas provision to households - and even in those there are still systemic problems such as negative externalities that require some level of regulation.
Distribution is a natural monopoly. Supply is not. Every supplier is putting the same, standardized product in the pipes. If they put a cubic foot in, and I take a cubic foot out, I can call them my supplier, even if they are putting it into the pipeline a thousand miles away from me and there is zero chance I will ever be burning the actual gas they supplied.
Indeed, and separating distribution from production is how decent competition is introduced in such markets (there are still barriers to entry related to infrastructure, but they’re nowhere as bad as the ones when the distribution infrastructure is owned by the gas company).
However, often that’s not how things are in the markets for gas, power and water supply as well as internet access.
Not only that but in markets were those things are separate the supply companies will try as hard as they can to get their hands on the distribution side (for obvious reasons), and, well, neoliberal politicians are usually happy to let them. The natural tendency in an unregulated market in those things is for sooner or later to end up in a winner-takes-all situation were one of the suppliers got it’s hands on the distribution side and used it to create a monopoly position, if only locally.
It’s a funny thing about the so-called “Free Market” in domains were it is possible for businesses to directly or indirectly create the conditions for natural monopolies: without actual intervention from an outside strong and independent actor (i.e. a governmental power with the will to intervene) such markets sooner or later end up naturally not being free anymore.
Market actors activelly and constantly seek a dominant position so if there are conditions for a monopoly (the most dominant position there is) one will eventually succeed and if there aren’t but there are for the next best thing (a cartel) a handful of them will eventually succeed.
Um… I’m perfectly OK with a “monopoly” for my fire fighting services. Why would I feel differently for my utilities services?
If the government decides to privatize utilities like electricity/gas or whatever, then sure it is freedom for some rich business owners to open up new businesses. However, this also results in those utilities becoming profit driven (as opposed to being for the public), and literally everyone in the country having to pay much more than they were paying previously.
My country had electricity privatized around 4 years ago, and in result we have to pay a lot more, not to mention about numerous fraud cases that were all over the news during and after the privatization period.
If you think that rich business owners being able to open up a couple of business at the expense of fucking over the public is a good thing and being against it is some weird hexbear delusion, then I’d advise you to get out of the libertarian bubble and look at the real world instead.
We’re talking about basic utilities though. Do you think the average person can start or run such a business? I’m honestly interested in the answer.
Please enlighten me on how I can start a utilities company? Make sure you give me details on how I can maximize profits to my shareholders while fucking over my customers.
Or maybe I should start a non-profit utilities company, and the cost of your services is subsidized by taxpayers’ money. That way, I don’t have to constantly chase capitalism and make life better for my community instead of my shareholders.
Nothing says punk more than enabling for profit corporations to hold sole ownership of the utilities that we need to continue living in a bare minimum standard of living. /s
Yes. Services like gas and water are natural monopolies - it doesn’t make sense to roll out two or three separate lots of distribution pipes, so you always just have one service available to you. The best option is to have them as government owned services.
And yet, I can choose from dozens of different energy companies for electricity and gas.
You’re choosing from vendors to deal with the regional vendor. You’re just paying someone to pay the company in your area. The company you pay in this scenario literally offers you zero value. They simply exist to extract money from you.
Alternatively, these services could be provided to you at a lower cost as part of your annual tax bill under a collaborative cooperative.
DOZENS? Dozens. For real, dozens??? Please list for me every utility company that will actually provide electricity service to your home. If it’s actually more than two I will donate $25 to a charity of your choice right now. Not ones that operate in your state/county, but ones that will actually service your home. No cap, my Visa is ready. I’ll post the receipt.
How do you send different supplier’s water down the same pipes while making sure customers get the supplier they’re paying for’s water?
