The top level comment was pointing out that privatization isn't necessarily the issue, it's that the government picks one company, and hands them a monopoly. That is what creates the situation you're describing. I have no idea why it's done this way (without devolving into pure cynicism). I guess maybe it's easier to administrate? And it allows the government to technically still own the utility, which they've just farmed out? Once you let a bunch of businesses take over, you're never really getting it back. The real answer is probably just: Laws.