Privatisation failed both rail and energy users

The article by Alastair Dalton on the UK Government plans for the railways (Perspective, 21 May) makes interesting reading, pointing out that UK Transport Secretary Grant Shapps “was at pains to say nationalisation had 'failed the railways'.”

If I remember correctly, Sir Bob Reid, who was chairman of BR at the time made strong recommendations not to privatise and fragment the railways in the way the government proposed. Privatisation has failed and to pretend that the new proposal is “not nationalisation” to a large degree can only be described as some sort of deception.

Privatisation of the electricity industry in 1990 has also resulted in fragmentation and failure. There are now approximately 164 electricity supply companies in the UK and the price of electricity is increasing by an average of four per cent per year, clearly above inflation. There is no central planning body or authority to implement the building of the energy infrastructure needed to meet the Government's own targets to reduce greenhouse gas emissions.

The Government should now announce plans to establish a national energy authority with statutory powers to manage the energy sector. It is time to recognise that the market is not a suitable system for the energy sector, with no discernible competition between firms, and escalating prices.

Not to do this will impose high electricity prices on the consumer over the coming years and they will have little choice but to pay for the Government's incompetence.