Importance of Public Utilities

The significance of public utilities are as follows:

1. No Competition: In absence of the competition owing to the monopoly of the public sector, there is a certainty about continuous and effective services.

2. No Discrimination: Discrimination among the poor and the rich do not exist since the public utilities offer uniform services at a uniform price to everyone. The poor do not enjoy any relief in prices and the rich do not pay extra in order to avail of the services.

3. Unification of Control: The utilities are controlled directly by the Government. This helps in ensuring efficiency and certainty of control. This is because the interest of the people always favors the government.

4. Service Motive: Offering services to people instead of generating profits is the main aim of public utilities. Due to this, society receives maximum benefits at a less cost.

5. Continuous Returns: Continuous services are provided by the / public utilities to the people. Hence, the basis of transactions in cash. In this way, the utilities enjoy a continuous flow of revenue and profits.

6. No Middlemen/Distributors: As the services are offered to the public directly, need of using any middle-man or distributor in the process is of no use. Hence, there is no need of incurring any extra charges.

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