By Manila Ryce
Published Wednesday, June 28th, 2006, 5:55 am
Filed under: This Week in Capitalism
As some of you may have noticed, I haven’t posted in awhile. I’m currently living with my grandmother who’s recovering from a stroke. So while this means I’m home all day, it doesn’t necessarily mean I have more time to type blogs. Most of my day is spent playing nurse, cooking meals (I bake some mean mahi mahi), doing laundry, running errands, and other fun stuff. And even though it’s almost 5:30 in the morning I am determined to finally type last weeks “This Week in Capitalism” before I pass out. So without further Apu, here it is:
In June of 1991 the United Kingdom’s monopoly gas supplier came under fire. Robert Evans, the chairman of British Gas, was criticized for receiving a 66% increase. This increase brought his salary up to £370,000 (674,768 USD). Also of interest was the fact that British Gas reported a 42% rise in profits just the previous month. Customers accused the privatized monopoly of ripping them off. The energy spokesman for The Labour Party, Frank Dobson, summed it up: “They think that now there are no restrictions on them they can do what they like, and in a sense they can”.
British Gas defended itself by saying that Evans’ increase was due to performance, not corruption. As is always the case in our capitalist societies, those who work the most get paid the least. I doubt that any of the other hard working men and women over at British Gas received a pay raise as generous as 66%. In 1996 the government finally decided to open the gas market to competition. British Gas was under pressure and responded by restructuring into five different businesses to compete. Since the late 90’s the company has demerged several times and extended into various markets.
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