Countries with Fully State-Owned Utility Services: Water, Gas, and Electricity
In many countries, utility services such as water supply, gas, and electricity are fully owned by the state. These services are often considered public goods that should be universally accessible and managed in the public interest. Below are examples of countries and the specific services they manage.
Water Supply
Countries like Cuba, Singapore, and Norway manage water supply as a public service. In these nations, the water supply is entirely managed by the government, ensuring universal access and public accountability.
Cuba
In Cuba, water supply is entirely managed by the government. Services are provided free of charge or at subsidized rates, ensuring universal access to this essential service.
Singapore
The Public Utilities Board (PUB) manages water in Singapore, which is considered a strategic resource. The government controls all aspects of water production, including the distribution of water.
Norway
In Norway, water supply systems are municipally owned and operated. This ensures public accountability and accessibility, reflecting the importance of water supply in the country.
Electricity Generation and Distribution
The generation and distribution of electricity are managed by state-owned companies in several countries. While some have transitioned towards mixed ownership models, full state ownership persists in others.
Norway
Norway has predominantly state-owned enterprises like Statkraft and regional municipal utilities managing electricity. While EDF électricité de France was historically a fully state-owned monopoly, the government now retains a majority stake.
France
France retains a major state presence in the electricity sector through EDF électricité de France, which has a history as a fully state-owned monopoly.
Bhutan
Bhutan’s electricity production and distribution are managed by the Bhutan Power Corporation, a state-owned entity. The emphasis on sustainability and universal access through hydropower is a key aspect of Bhutan’s development model.
Gas Distribution
State-owned companies play a critical role in the gas production and distribution in several countries, reflecting their strategic importance.
Qatar
Qatar’s gas production and distribution are primarily managed by QatarEnergy, a state-controlled company. This reflects the country’s heavy reliance on natural gas exports and domestic use.
Russia
Russia’s gas distribution is dominated by Gazprom, a state-controlled company. This reflects the strategic importance of natural gas in Russia’s energy sector.
Countries with All Utilities Fully State-Owned
In some countries, all utilities—water, gas, and electricity—are fully state-owned and provided as part of the socialist governance model.
Cuba
Cuba maintains a fully state-owned model for all utilities, ensuring universal access to these essential services as part of its socialist governance framework.
Bhutan
Bhutan’s utilities, including electricity and water, are largely controlled by the state, with a focus on sustainability and universal access.
North Korea
Like its other economic sectors, North Korea fully controls its utilities, though service reliability can be inconsistent.
Rationale for State Ownership
**Equity:** Ensures universal access to essential services regardless of income, providing a basic standard of living for all citizens.
**Strategic Importance:** Utilities like electricity and water are critical for national security and development.
**Public Accountability:** State ownership emphasizes public welfare over profit, ensuring that these essential services are managed in the public interest.
Challenges of State Ownership
**Efficiency Issues:** The lack of competition can lead to inefficiencies and a lack of innovation in state-owned utilities.
**Underinvestment:** Governments may struggle to fund necessary infrastructure upgrades, potentially leading to underinvestment in these essential services.
Emerging Trends
Many countries are transitioning towards mixed ownership models or partial privatization to attract investment and increase efficiency. Examples include India, Brazil, and Germany. However, full state ownership remains prevalent in countries that prioritize universal access and public control of these essential services.