05.07.2009
Privatization means transferring the control of an enterprise from the government sector to the private sector. Generally, but not always, this also means transferring ownership of the Public sector enterprise as well as control. It can be accomplished by sale or lease. It can be accomplished by the government selling 100% of an enterprise, or selling 51%, or even by selling a minority stake – so long as the private sector is given full managerial control.
Method developed first in the UK which provides a way of funding major capital investment, often large infrastructure projects, without having recourse to the public purse. Private consortia are contracted to design, build, and in some cases manage new projects. Contracts typically last for 30 years.
When certain consumers receive priority allocation of gas, for instance when Russia cut off gas supplies to the Ukraine, home consumers received priority allocation of gas over industrial users. Priority allocation can be used in cases where demand is greater than supply