Public utilities should be privatized ?

1. When public utilities try to increase their rates to pay for an infrastructure update or a new
treatment plant, city council members or local commissioners have to vote to approve those
rates. Those voting officials are tied to a constituency.

2. Privatization boosts the efficiency and quality of remaining government activities,

reducing taxes, and shrinking the size of government.  the profit-seeking behavior of new,
private sector managers will undoubtedly lead to cost cutting and greater attention to
customer satisfaction.
3. It is argued that a private firm has pressure from shareholders to perform efficiently. If the
firm is inefficient then the firm could be subject to a takeover. A state-owned firm doesn’t
have this pressure and so it is easier for them to be inefficient.
4. Fostering Competition; Most of the public enterprises enjoy the status of monopoly.

It results in inefficiency and losses.

5. Optimum Utilisation of Resources It has been observed that the

public sector has failed in the optimal use of national resources.

The private sector may succeed in the optimum use of resources by maintaining
efficiency.