Editing Public utility (section)

==Management==
Public utilities have historically been considered to be a [[natural monopoly]]. This school of thought holds that the most cost-efficient way of doing business is through a single firm because these are capital-intensive businesses with unusually large economies of scale and high fixed costs associated with building and operating the infrastructure, e.g. power plants, telephone lines and water treatment facilities.<ref>{{cite journal |last1=Ulbrich |first1=Holley H. |title=Natural Monopoly in Principles Textbooks: A Pedagogical Note. |journal=The Journal of Economic Education |year=1991 |volume= 22 |issue=2 (Spring 1991) |pages=179–182 |doi=10.1080/00220485.1991.10844706 |jstor=1182423 |url=https://www.jstor.org/stable/1182423}}</ref> However, over the past several decades, traditional public utilities' monopoly position has eroded. For instance, wholesale [[electricity generation]] markets, electric transmission networks,<ref>{{cite web |title=FERC Order 888 |url=https://www.ferc.gov/industries-data/electric/industry-activities/open-access-transmission-tariff-oatt-reform/history-oatt-reform/order-no-888 }}</ref> [[electricity retailing]] and customer choice,<ref>{{cite web |last1=Clark |first1=Doug |title=Electricity customer choice program participation examined (Nov, 15, 2019) |url=https://dailyenergyinsider.com/news/22704-electricity-customer-choice-program-participation-examined/ |website=Daily Energy Insider |date=5 November 2019 |access-date=14 May 2021}}</ref> [[telecommunications]], some types of [[public transit]] and [[mail|postal service]]s have become competitive in some countries and the trend towards [[liberalization]], [[deregulation]] and [[privatization]] of public utilities is growing. However, the infrastructure used to distribute most utility products and services has remained largely monopolistic.{{citation needed|date=February 2017}}

Key players in the public utility sector include:<ref name=":0">{{Cite web|last=Murphy|first=Chris B.|title=How the Utilities Sector is Used by Investors for Dividends and Safety|url=https://www.investopedia.com/terms/u/utilities_sector.asp |website=Investopedia|language=en}}</ref>
* '''Generators''' produce or collect the specific product to be used by customers: for example, electricity or water.
* '''Network operators''' (grid operators, regional network operators, and [[distribution network operator]]s) sell access to their networks to retail service providers, who deliver the product to the end user.
* '''Traders and marketers''' buy and sell the actual product and create further complex structured products, combined services and derivatives products. Depending on the product structure, these companies may provide utilities and businesses with a reliable supply of a product like electricity at a stable, predictable price, or a shorter term supply at a more volatile price.
* '''Service providers and retailers''' are the last segment in the [[supply chain]], selling directly to the final [[consumer]]. In some markets, final consumers can choose their own [[retail]] service provider.

Public utilities must pursue the following objective given the [[social responsibility]] their services attribute to them:
* Ensuring services are of the highest quality and responsive to the needs and wishes of [[Patients' rights|patients]];
* Ensuring that health services are effectively targeted so as to improve the health of local populations;
* Improving the efficiency of the services so the volume of well-targeted effective services is the widest, given the available resources.<ref name=":1">{{Cite book|last=Gilardoni|first=A|title=Public Utilities e Infrastrutture. Profili economici e gestionali|publisher=Agici|year=2015}}</ref>

The management of public utilities continues to be important for local and general [[government]]s. By creating, expanding, and improving upon public utilities, a governmental body may attempt to improve its image or attract investment. Traditionally, public services have been provided by public legal entities, which operate much like corporations, but differ in that profit is not necessary for a functional business. A significant factor in government ownership has been to reduce the [[risk]] that an activity, if left to private initiative, may be considered not sufficiently [[Profit (economics)|profitable]] and neglected. Many utilities are essential for human life, national defense, or commerce, and the risk of public harm with mismanagement is considerably greater than with other goods. The principle of [[Universality (philosophy)|universality]] of utilities maintains that these services are best owned by, and operating for, the public. The government and the [[society]] itself would like to see these services being economically accessible to all or most of the population. Furthermore, other economic reasons based the idea: public services need huge [[investment (macroeconomics)|investment]]s in [[infrastructure]]s, crucial for competitiveness but with a slow [[return of capital]]; last, technical difficulties can occur in the management of plurality of networks, example in the city [[subsoil]].<ref name=":1" />

Public pressure for [[renewable energy]] as a replacement for legacy fossil fuel power has steadily increased since the 1980s. As the technology needed to source the necessary amount of [[energy]] from renewable sources is still under study, public [[energy policy]] has been focused on short term alternatives such as natural gas (which still produces substantial [[carbon dioxide]]) or [[nuclear power]]. In 2021 a power and utilities industry outlook report by Deloitte identified a number of trends for the utilities industry:
* Enhanced [[competition]], sparked by regulations such as [[Federal Energy Regulatory Commission|FERC]]'s Order 2222 that open up the market to smaller, innovative firms using renewable energy sources, like wind or [[solar power]]
* Expansions in infrastructure, to manage new renewable energy sources
* Greater [[electrification]] of transportation, and longer-range batteries for cars and trucks
* [[Oil companies]] and other traditional-energy players entering the renewable-energy field
* A greater emphasis on disaster readiness<ref>{{Cite web|title=2021 Power and Utilities Industry Outlook|url=https://www2.deloitte.com/us/en/pages/energy-and-resources/articles/power-and-utilities-industry-outlook.html|access-date=2021-04-29|website=Deloitte United States|language=en}}</ref>