Electricity companies and their political connections

Over the last few years, we have seen significant changes both in the price of electricity and the way we pay for it.  We pay a lot more than many other European countries - see earlier post “Cost of electricity around Europe”.  Perhaps the extensive connections between the politicians and the utility companies have something to do with it.

The economic crisis has highlighted the practice, particularly in Spain and Ireland, whereby civil servants and politicians, whose job has been to monitor certain sectors of the economy (such as finance and utilities), end up being board members of, or consultants to, the companies which they previously monitored.

This practice is highly questionable as it surely allows for the possibility of favours being granted to these companies in exchange for personal benefits in the future.  And some of these benefits are quite substantial.  Check out this Yahoo article which identifies some of the politicians in question and the benefits they derive from their association with the electricity companies.  It’s in Spanish.