It sounds similar to the insurance industry. The more they pay for medical expenses, the more profit they are allowed to keep. Bad incentives all around.
At least with health insurance most companies purchasing insurance for their employees have at least 2 companies to choose from, which gives some incentive to keep costs down. With power companies, there seems to be little market pressure, making any benefits of being privatized minimal at best.
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It sounds similar to the insurance industry. The more they pay for medical expenses, the more profit they are allowed to keep. Bad incentives all around.
At least with health insurance most companies purchasing insurance for their employees have at least 2 companies to choose from, which gives some incentive to keep costs down. With power companies, there seems to be little market pressure, making any benefits of being privatized minimal at best.