Abstract
Privatisation and Deregulation become popular as policy reform in the developed countries in 1980’s. In addition, those policies are implemented in the marketization for the East European countries and PFI of infrastructure industries of the developing countries. It is effective to eliminate inefficiencies of nationalized companies and allow new entrants into former regulated markets. It is possible to decrease public deficits and stimulate R&D, and also to realize an economic growth.
Now the Unbundling of vertical integrated company is regards as an important device to promote competition in traditional natural monopoly industries. However, as there remains still the concept of Universal Service, we should be careful to introduce it. Even if shares of state-owned enterprises are sold off, there is a risk that supply volume could be reduced. Perfect competition in the textbook cannot be functioned completely in the network industries or public utilities. It is a better solution to strengthen relationship between private companies and government.
In this paper, we focus on the reform of the UK electricity, water and rail industries as pioneer cases, watch how to change the existing structure in order to foster competition and find out the current problems to which regulators and customers are facing with globalization. Finally we make clear about the future implication to ensure the stable supply condition in longer perspectives.
