Privatisation: The Triumph of Past Practice Over Current Requirements

Chick, Martin

doi:10.1080/00076798700000083

Cited by 6 publications

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“…Although large investments were made throughout the 1960s and 1970s (Figure 5), politicians and economists queried whether they were the right type. Coal-fired plants were the focus of investment, as the coal industry was protected and politicians wanted to maintain employment – creating mutual efficiencies for both industries (Chick, 1987). Therefore, the economic growth of the country was prioritised and the role of accounting was minimal: economists, engineers and politicians were the main decision makers of the investment process.…”

Section: History Of Investment Practices In the British Electricity Industrymentioning

confidence: 99%

“…However, decisions made by the CEGB were not affected despite policy suggestions to increase control on investment. Information was not shared between government departments, resulting in suboptimal decision-making, and this affected long-term investment decisions (Chick, 1987). Accounting still had limited influence on the process.…”

Section: History Of Investment Practices In the British Electricity Industrymentioning

confidence: 99%

“…The government’s main priority was to sustain a post-war economic boom, aided by sustaining demand and supply in the energy sector – this continued into the 1970s. In historical terms, government performance was measured by the cost of living and unemployment levels (Chick, 1987), and large investments directly related to both. So still, economists played a more significant role than accountants, and the industry continued to be protected from the full force of financialisation.…”

Section: History Of Investment Practices In the British Electricity Industrymentioning

confidence: 99%

“…The 1970s witnessed a government shake-up, triggering a miners’ strike and in turn a coal supply problem (Cochrane and Schaefer, 1990). Conflict was also emerging between politicians and industry managers (Chick, 1987). A question arose on how investment decisions should be made, in particular whether investment decisions should be made by government, economists or engineers – with accountants playing a minimal role in this dialogue.…”

Section: History Of Investment Practices In the British Electricity Industrymentioning

confidence: 99%

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Investments in power generation in Great Britain c.1960-2010

Warren

Quinn

Kristandl

2017

QRAM

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Investments in power generation in Great Britain c.1960-2010 -The role of accounting and the financialisation of investment decisions. Abstract PurposeThis paper explores the increasing role of financialisation on investment decisions in the power generation industry in Great Britain (GB). Such decisions affect society, and the relative role of financialisation in these macro-levels decisions has not been explored from a historical perspective. Design and methodThe paper draws on historical material and interview data. Specifically, we use an approach inspired by institutional sociology drawing on elements of Scott's (2014) pillars of institutions. Applying concepts stemming from regulative and normative pressures, we explore changes in investments over the analysis period to determine forces which institutionalised practices -such as accounting -into investment in power generation. FindingsInvestments in electricity generation have different levels of public and private participation.However, the common logics that underpin such investment practices provide an important understanding of the political-economics and institutional change in the UK. Thus, the heightened use of accounting in investment has been, to some extent, a contributory factor to the power supply problems now faced by the British public. Originality/valueThis paper contributes to prior literature on the effects of financialisation on society, adding power generation/energy supply to the many societal level issues already explored. It also provides brief but unique insights into the changing nature of the role of accounting in an industry sector over an extended timeframe. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 IntroductionThe financialisation of energy policy implies increased use of market mechanisms, with the financial sector and financial actors (such as accountants) playing a critical role in the decision making process of investments in power generation assets. However, with Great Britain (GB) currently witnessing an investment hiatus, should an essential commodity such as electricity, be subject to values and ideology of this phenomenon? In other words, should investments in power stations be financialised 1 ? With the electricity industry struggling to secure investment, this paper challenges the paradigm of neo-liberal economic policy which is supported by financialisation for the energy sector. To be specific, this paper examines the increasing impact of accounting (with those using accounting as the financial actors with financial motive in the financialisation process) on such decisions. We do this by reflecting on historical developments in GBs generation market from circa 1960-2010 2 .Electricity is essential to support business and households, and, thus, so is maintaining a secure production of electricity. In power generation, the importance o...

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Section: History Of Investment Practices In the British Electricity Industrymentioning

confidence: 99%

Section: History Of Investment Practices In the British Electricity Industrymentioning

confidence: 99%

Section: History Of Investment Practices In the British Electricity Industrymentioning

confidence: 99%

Section: History Of Investment Practices In the British Electricity Industrymentioning

confidence: 99%

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