Q: My question is about utilities but we could extend it to any enterprise - it really deals with governments not letting the (often painful) market forces of capitalism take over. I'm not some kind of anti-government fanatic but I know true (unfortunately painful-now) market forces are being and will be suppressed more by cash-strapped governments facing a popular backlash.
I've come across a story where the British government may turn to forcing regulated utilities to accept lower profitability and thus lower dividend payouts to help keep utility bills down for the consumer.
Utilities may argue they can't provide reliable services without higher rates but it seems any company delivering 4-8%+ dividends wouldn't get much sympathy from cash-starved governments in a sub 1% interest rate environment.
With rising political pressure from financially strapped consumers would governments view regulating profits of utilities, banks and others as a great way to boost their popularity?
I've come across a story where the British government may turn to forcing regulated utilities to accept lower profitability and thus lower dividend payouts to help keep utility bills down for the consumer.
Utilities may argue they can't provide reliable services without higher rates but it seems any company delivering 4-8%+ dividends wouldn't get much sympathy from cash-starved governments in a sub 1% interest rate environment.
With rising political pressure from financially strapped consumers would governments view regulating profits of utilities, banks and others as a great way to boost their popularity?
