Thread: Are industry regulators a danger to the public?
View Single Post
Old 01-02-2007, 18:09   #6
Vlad_Dracul
cf.mega poster
 
Vlad_Dracul's Avatar
 
Join Date: Apr 2004
Location: Wherever I lay my hat, thats my home...
Services: Dispensing wit and wisdom in so far as I am able . P3 500Mhz/ 2Mb BB when it works,no Tv,n
Posts: 1,046
Vlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful oneVlad_Dracul is the helpful one
Re: Are industry regulators a danger to the public?
Quote:
Originally Posted by foreverwar View Post
And should profits come before public safety? Poor old National Grid making £872 million profits every six months - shouldn't they re-invest some of that?

And Northern Gas Networks made a profit of £50million on a turnover of £250million - a lot of companies would love a 20% profit margin - perhaps they could use some of that to improve network distribution safety, and they could gain tax deductions for the Capital Expenditure.
That is exactly the problem, the big parent companies such as national grid are making big profits,nothing wrong with that,they are public companies and succesfull ones at that BUT,and I'll repeat myself, UK Distribution,a subsidiary of National Grid is ring fenced and is not allowed to be cross subsidised by its parent >National Grid. UK distribution is the bit that is regulated by OFGEM which is forcing a 30% plus cut in operating costs for the next review period. So even though National Grid made 800 plus m profit,it cant bail out its UK distrubtion bit becuase OFGEM wont allow it. UKdistribution is therefore starved of investment and income,it manages urban gas distribution and gas emergencies,its being throttled by the regulator and there in lies the danger.. The same is repeated across the other distribution networks such as the others you mention. Also becuase of the squeeze, people are leaving to find jobs elsewhere and not being replaced. There is almost zero recruitment. Perhaps they will eventually get some Polish gasmen and they can do the job 24/7 for £5 an hour? Thats what OFGEM would like.
Vlad_Dracul is offline   Reply With Quote