Privatization and and Nationalisation

Definition of Nationalisation

This is the acquisition of private companies by the public sector

Definition of Privatisation

The return of state enterprises to private ownership and control

Definiton of Deregulation

Privatization was often accompanied by deregulation.

Deregulation involves opening the market to competition. E.G. BT was a legal monopoly, but after privatization the market was opened up to competition and competitors could use BT’s network.

Deregulation took longer in Electricity and Gas and will be very difficult in Water. The Postal service has recently been deregulated.