Privatization of Roads, Electricity?

From: Sachin Patil

Sent: Thursday, October 01, 2020 10:12 AM

To: wblock@loyno.edu

Subject: Privatisation of Electricity

Dear Sir,

I watched your video on YouTube, where you discussed “Privatisation of Roads”. I was very impressed by it. I wish to know, can Electricity be privatised? (Both Generation & Distribution). Is it possible to have competition in privatised Electricity? Will private Electricity companies take Electricity to remote areas? I kindly request you to comment on this. Awaiting hearing further from you.

Kind Regards

Sachin

Dear Sachin:

Thanks for your kind words.

You’re not really asking about electricity. You’re really asking about deliving anything (food, electricity, mail, clothing, bicycles, whatever) to remote areas. It is more costly to deliver anything to remote areas. So the answer is, Yes, private companies will deliver stuff to remote areas, but will charge more for doing so. On the other hand, one reason for being in the remote areas in the first place is that productivity is higher there, so that consumers will be able to pay these higher prices for delivery. It costs a lot to deliver oranges from Florida to Alaska. Yet, it is done. Ditto for electricity, or anything else.

Best regards,

Walter

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3:56 am on March 16, 2021

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