The supposed dead weight loss that monopolies bring are actually brought about by people trying to maximize profit. This has been proved (google Steve Keen, economist). As the government doesn’t need to make a profit that dead weight loss doesn’t exist.This is wrong for a number of reasons.
The reason for a deadweight loss is that output is below the perfectly competitive level of output, call it q(c). I am assuming that no one wants to produce at a level greater than q(c) to avoid outright losses. I will also assume here that the price is read off the demand curve so that all output is sold. The reason for output being below q(c) doesn’t matter. Whether the firm is maximizing profits or not there will still be a deadweight loss if output is below q(c). For example, assume that q(c) is 10 and the monopoly level of output, q(m), is 5. Then any level of output between 5 and 10 will not maximise profits for the monopolist but will result in a deadweight loss. So not maximising profits does not mean no deadweight loss. What results in no deadweight loss is producing the perfectly competitive level of output.
Note also that both monopolists and competitive firms maximise profits. But only one results in a deadweight loss. So having firms maximise profits doesn't mean there will be a deadweight loss.
Even state owned firms need to make (non-negative) profits, in that their revenues have to at least as large as their costs of production to avoid any subsidies, and their implied taxes.
Bastard goes on,
Monopolies are actually more efficient than competition due to several factors: Economies of scale and having only to deal with itself and the customer (rather than several independent competitors and the customer) being the most notable.Now here I'm guessing (the "Economies of scale" bit) that Bastard is assuming a natural monopoly and thus you get the standard result that a single firm is the most efficient form of production. Note that the whole discussing is about electricity and I'm not sure that electricity production is a natural monopoly and thus the natural monopoly arguments don't apply. Natural oligopoly may be.
Update: Bastard goes on to say,
And my description of dead weight loss is spot on – it is profit.No I'm not making this up!