The business of utilities

WHEN electricity was first supplied to homes, it triggered strong emotions. People were delighted and amazed especially when there was light in the night - unbelievable just with a flick of a switch. This sense of bewilderment was also accompanied by an equally strong emotion - utter horror. The dim gas lamps and smoky candles which were previously used gave way to sharp bright lights revealing starkly how filthy their homes were. The 20th century had begun.

This parable is used to remind us of the profound effect of generated power and other utilities such as clean water supply and effective sewage treatment have had on our lives. This reminder is necessary as we the consumers and as well as investors do take modern-day utilities for granted. To this end we aim to revisit the origins of the utilities sector, which will then help us to formulate the right questions to ask when examining these businesses.

Anyone for a monopoly?