One in the eye for the Reds

[Big Ed]

Well, thank goodness!

In these morally bankrupt times, someone has done the decent thing and fought back against tyranny.

Yesterday, I almost wept when I heard the lone voice of the Prime Minister, attempt to stand up against Red Ed’s Communists, trying to drag our great nation towards a Marxist Universe http://www.dailymail.co.uk/news/article-2450937/Ed-Miliband-wants-live-Marxist-universe-claims-David-Cameron.html, but I rejoice today as the fightback begins.

In the face of ferocious pressure from Stalinist pensioners and freedom-hating poor people, those noble officers in charge of SSE have refused to kowtow and have bravely increased their fuel prices again. http://news.sky.com/story/1152552/energy-bills-sse-to-raise-tariffs-by-8-2-percent

All we need now is for the rest of the Big Six to stand firm and do the same and the prospect of the Berlin Wall going up again will disappear forever.

Stick that up yer balalaika Boris!

[Phil D. Rolls]

Well, thank goodness!

In these morally bankrupt times, someone has done the decent thing and fought back against tyranny.

Yesterday, I almost wept when I heard the lone voice of the Prime Minister, attempt to stand up against Red Ed’s Communists, trying to drag our great nation towards a Marxist Universe http://www.dailymail.co.uk/news/article-2450937/Ed-Miliband-wants-live-Marxist-universe-claims-David-Cameron.html, but I rejoice today as the fightback begins.

In the face of ferocious pressure from Stalinist pensioners and freedom-hating poor people, those noble officers in charge of SSE have refused to kowtow and have bravely increased their fuel prices again. http://news.sky.com/story/1152552/energy-bills-sse-to-raise-tariffs-by-8-2-percent

All we need now is for the rest of the Big Six to stand firm and do the same and the prospect of the Berlin Wall going up again will disappear forever.

Stick that up yer balalaika Boris!

So proud to live in a country where the "free market" sets the price for essential commodities, and not some central council of a baby eating socialist dictatorship.

Nope, I want my prices fixed by nice men with shirts and ties that play golf together and never discuss how much they can charge us. That's how democracy works!

[RyeSloan]

Yet utilities are already regulated are they not? With specific regulation around how much profit they are allowed to make.

There has also been a rather recent investigation that found the utilities were not price fixing.

There is also a huge backlog of investment needed to meet 'green' targets set by government and the EU.

Add in top of that the green levy that is further evidence of central planning gone mad where all users subsidise folk to put rather ineffectual solar panels on their roof or pay for renewable energy that is significantly more expensive than traditional generation.

Finally successive governments have failed to come up with any credible energy policies to allow substantial long term investment to be made.

Oldest trick in the book to blame the companies involved and although I doubt they are blameless the mess of the UK energy market should be lying squarely at the feet of our ineffective and misguided politicians.

[Part/Time Supporter]

Interesting article about the sector here:

http://www.francisclark.co.uk/news-views/blog/labour-has-a-new-energy-policy-has-it-let-politics-disr/

Basic gist is that the private energy sector *was* competitive, until Nu Labour made the mistake of allowing companies to both generate power and sell electricity to the end user. As soon as they did that the industry consolidated and it has been impossible for anyone to break the dominance of the established companies. Although all the coverage has been about the "price freeze" policy, the other stuff Miliband's Labour has to say now is more interesting.


... much commentary will no doubt attack the proposed price freeze as evidence of economic illiteracy or as an election gimmick, but I do not think either is quite right as it needs to be seen in the context of a crunch and confrontation with the Big 6 that was inevitable anyway, and Labour’s apparent plan to use the ensuing crisis to reorganise substantially the industry. That reorganisation could ultimately prove very helpful long term to almost all generation and supply market participants, other than the Big 6.

If they [Labour] are to have any chance of communicating that context and long term prize successfully they need to moderate how much they present the price freeze as some form of consumer payback and focus more on wider energy policy issues. I suspect these are harder to communicate and less headline-friendly, however.

[Big Ed]

Interesting article about the sector here:

http://www.francisclark.co.uk/news-views/blog/labour-has-a-new-energy-policy-has-it-let-politics-disr/

Basic gist is that the private energy sector *was* competitive, until Nu Labour made the mistake of allowing companies to both generate power and sell electricity to the end user. As soon as they did that the industry consolidated and it has been impossible for anyone to break the dominance of the established companies. Although all the coverage has been about the "price freeze" policy, the other stuff Miliband's Labour has to say now is more interesting.

Thanks for posting this interesting article P/TS: its helpful detail on the background of the energy debate and how we got to where we are is very informative.

It is clear that, one way or another, something has to be done with energy policy. Given that, somewhat surprisingly, Labour appear to have put some thought into this, it is interesting to see where they feel they can advance a narrative on tackling perceived excesses in big business.

What will be equally interesting will be the response of the Government. If all they are going to do is invoke the spectre about "Socialists" interfering in business, then I think they'll get a shock. Simply sitting idly and watching the current situation continue is surely not an option.



Yet utilities are already regulated are they not? With specific regulation around how much profit they are allowed to make.

There has also been a rather recent investigation that found the utilities were not price fixing.

There is also a huge backlog of investment needed to meet 'green' targets set by government and the EU.

Add in top of that the green levy that is further evidence of central planning gone mad where all users subsidise folk to put rather ineffectual solar panels on their roof or pay for renewable energy that is significantly more expensive than traditional generation.

Finally successive governments have failed to come up with any credible energy policies to allow substantial long term investment to be made.

Oldest trick in the book to blame the companies involved and although I doubt they are blameless the mess of the UK energy market should be lying squarely at the feet of our ineffective and misguided politicians.

I agree that is a lot more to this story than energy companies hiking up prices just as winter approaches. Wholesale costs, delivery and Government taxes have been listed as reasons for the price rises, contributing to an average annual price of just less than £1400 for SSE gas and electricity customers.

You might have some sympathy with SSE then, but maybe not when you hear that they made a profit of £1,400,000,000 last year.

[RyeSloan]

Sympathy no not really.

But a £1.4bn profit on a £32 bn turnover hardly sounds like rampant profiteering to me.

There is also the fact that capital intensive businesses like utilities need to make a profit otherwise who would provide the capital to invest?

[Beefster]

Can anyone remind me what Ed Miliband's last job was when Labour were in power and what he did to get the utility companies' price rises under control?

I'm all for the utility companies keeping their prices under control but it's a tad hypocritical to have the opportunity to do something, not do anything and then whinge like a ****er about the new boys not doing anything.

[Big Ed]

Sympathy no not really.

But a £1.4bn profit on a £32 bn turnover hardly sounds like rampant profiteering to me.

There is also the fact that capital intensive businesses like utilities need to make a profit otherwise who would provide the capital to invest?

That profit to turnover ratio might not seem excessive, but that profit figure is still a huge amount of money, especially when you consider that people are going to be asked to pay an extra £100, on average, per year.

Significantly above inflation increases in energy bills, at a time of wage stagnation for most, seem like an everlasting narrative and it's not like you can do without gas or electricity.

It shouldn't be allowed to carry on and if Labour continue to press the Government on this, it may actually prompt them to do something positive regarding the excessive costs to consumers.


Can anyone remind me what Ed Miliband's last job was when Labour were in power and what he did to get the utility companies' price rises under control?

I'm all for the utility companies keeping their prices under control but it's a tad hypocritical to have the opportunity to do something, not do anything and then whinge like a ****er about the new boys not doing anything.

The irony is not lost on me, but at least he'll have extensive knowledge of how the industry is run, warts and all.

I think that the narrative has to change for Labour: they backed a market led economy so as to avoid being seen as Trots under Blair and Brown with light-touches for regulators and embracing ideas like PFI.

They need to admit where the screwed up and their energy policy is as good an example of that as any. No one is seriously advocating re-nationalisation and, as SiMar stated, capital intensive businesses need to turn a profit, so let's get on with finding out how we can find a way to stop ripping off consumers.

[NAE NOOKIE]

That profit to turnover ratio might not seem excessive, but that profit figure is still a huge amount of money, especially when you consider that people are going to be asked to pay an extra £100, on average, per year.

Significantly above inflation increases in energy bills, at a time of wage stagnation for most, seem like an everlasting narrative and it's not like you can do without gas or electricity.

It shouldn't be allowed to carry on and if Labour continue to press the Government on this, it may actually prompt them to do something positive regarding the excessive costs to consumers.



The irony is not lost on me, but at least he'll have extensive knowledge of how the industry is run, warts and all.

I think that the narrative has to change for Labour: they backed a market led economy so as to avoid being seen as Trots under Blair and Brown with light-touches for regulators and embracing ideas like PFI.

They need to admit where the screwed up and their energy policy is as good an example of that as any. No one is seriously advocating re-nationalisation and, as SiMar stated, capital intensive businesses need to turn a profit, so let's get on with finding out how we can find a way to stop ripping off consumers.

Apart from me that is :greengrin

As far as I am concerned human beings have strived for centuries to make society better and in spite of the fact that we have failed to achieve a science fiction type utopia where robots and computers do all the work and humans are able to devote themselves to better things like ending war and famine we have made significant progress.

In order to survive ( especially in a northern climate ) humans need heat, water and light.

In a humane civilized society these 3 things should be provided for the people by the people and not left in the hands of companies and individuals who's aim is to make money. These things need to be paid for, but any money taken in should be to maintain and improve the infrastructure and pay the workers running it ..... not to improve the lot of executives and shareholders.

[snooky]

Apart from me that is :greengrin

As far as I am concerned human beings have strived for centuries to make society better and in spite of the fact that we have failed to achieve a science fiction type utopia where robots and computers do all the work and humans are able to devote themselves to better things like ending war and famine we have made significant progress.

In order to survive ( especially in a northern climate ) humans need heat, water and light.

In a humane civilized society these 3 things should be provided for the people by the people and not left in the hands of companies and individuals who's aim is to make money. These things need to be paid for, but any money taken in should be to maintain and improve the infrastructure and pay the workers running it ..... not to improve the lot of executives and shareholders.

Me too.
I agree with all of your points.
:top marks

[IWasThere2016]

I wouldn't leave my goldfish - let alone the economy - under the care of Milliband, Balls etc..

[Big Ed]

I wouldn't leave my goldfish - let alone the economy - under the care of Milliband, Balls etc..

Would you be happy to leave the fish food with Cameron and Osbourne?

[snooky]

Would you be happy to leave the fish food with Cameron and Osbourne?

Are the goldfish under 25 years old? :wink:

[Big Ed]

Are the goldfish under 25 years old? :wink:

...or are they very rich Chinese goldfish?