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  PaulB - We have a Government that is overborrowed, its fiscal policy is in a mess, do you really think that they would be in a position to subsidise power? Utility companies would be a cash cow to them, they would blame (correctly) world prices for any increases. £25bn has gone into Northern Rock and that would be peanuts compared to what you are suggesting. Subsidy is the narrow end of the wedge and very dangerous, would you suggest that food production too should be in the hands of the Government for the same reasons? Given food price increases you could make the same argument.
  
  Doing what you sugest would be unsustainable, expensive, a commercial disaster and would require huge tax rises. If taxes did not go up to pay for it the money would have to be borrowed or printed and that would further push up domestic inflation. It would be an economic timebomb exacerbating the current problem.
  
  The truth is that the competition in the system has kept prices lower than they might have been and even today you can reduce the price of your power by moving supplier. Consumers do win out with the privatised system.

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