What nationalising energy companies would cost – and how to do it
JVL Introduction
Public ownership of energy is immensely popular – even 62% of Tory voters want it.
Here Andrew Fisher, former chief of policy under Corbyn, writing in openDemocracy, explains why it is both sensible and cost effective even in the short-term.
It was amongst Keir Starmer’s 10 pledges.
Labour already has a detailed plan, drawn up in 2019, as to how to re-establish a public energy ecosystem, run for people not for profit.
It would cost around £2.8bn to nationalise the Big 5 – and already £2.7bn has been spent bailing out the companies that have failed recently.
The big energy retail companies made £23bn in dividends between 2010 and 2020 – £43bn if you include share buy-backs.
Profit has failed disastrously as a regulator for use of our natural resources.
Wake up Keir Starmer!
This article was originally published by openDemocracy on Wed 17 Aug 2022. Read the original here.
What nationalising energy companies would cost – and how to do it
UK could bring National Grid and retailers in-house and build public renewable energy, says ex-Labour policy chief
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Nationalisation should be under workers’ control…or don’t the workers get a say?
Perfect example of why JC and those around him were walked all over
Stop playing fair with Capatalism
The question that should be asked is ‘what do you do if the market is broken or corrupt ‘
Let them fail no matter how big they are, don’t pay a penny
For everything else give Regulators powers of unlimited fines and gaol time
Establish a ‘Socialist Bank’ to protect our money and interests when Labour are not in power
Clear Red Tories out of our party
Use MSM and toilet papers as a cash cow, regulate them into the ground
The problem with the utilities is that the whole system for regulating them is artificial. They are not entities to which a market can apply. It seems to me that they are woefully short on capital investment, which suffers because cash-flow goes on dividends and interest charges (in Thames Water’s case, partly resulting from borrowings to pay off the money spent on shares in the original privatisation). [note:- share buy-backs are a curse in modern financial markets, where it’s all done on borrowed money and no one puts up real risk capital – except the “suckers”]. In other words, regaining control of the utilities ought not to cost much.
Some good ideas from Doug.
Time to go on the offensive.
Labour Party policy is decided allegedly by National Policy Forum. Why does the NEC allow Starmer to spout off his views as if they are actual policy, but which he makes up on the hoof, without consulting the NEC or the NPF .
You can’t regulate what you don’t own and if you do own it why regulate it?
As long ago as the 19th century economists (well one really) wer predicitng the ultimate concentration of enterprises into great monopolies. This has happened. There is no effective free market in energy, telecoms, water, transport, higher education and impending monopolies in food. We may have a Big5 energy providers but they are operating an informal cartel (illegal under EU rules and subject to multibillion fines as were Microsoft and Google, oh but…).
The Tories even intervene when the market does operate price controls. A sharia compliant student loan fund in Manchester with an effective interest rate of 2% (because they charge admin fees not ongoing interest) was ordered to put the fees up to equal the 6% of the government suppliers or be forbidden to operate. Electricity prices are set at the gas rate, much higher than the wind rate. Renewables providers could undercut and create a dash for wind by consumers if they were allowed to price accordingly. The government forbids it.
Free market economics are collpasing everywhere. The only alternatives are community control and state regulation. As they do across europe. Will our dinosaur leaders wake up and see the asteroid heading for neo-liberal land?
Totally agree . what on earth is the matter with Starmer ????
Starmer has proven many times that he has no political nouse. Choosing Mandelson as an advisor sealed the proof.
His reasons for not Nationalising the Energy Companies, was more proof of his lack of political nouse.
I bet Ed Miliband has sleepless nights, when he remembers giving him a safe LP seat.
Charities are struggling as people reduce or cancel donations, they are watching inflation going over 10% and the forecast of energy prices actually trebling. We must keep the pressure on Starmer, posting on Facebook and Twitter, emphasising the disaster we are heading for because of his lack of policies and challenges towards the Tories.
The phrase “working class” should be defunct. It is traditionally associated with lower paid and unskilled jobs but there is no real reason for this! Anyone who receives a wage should be regarded as working class even if that person is skilled, talented or highly paid they are still receiving payment for their services. This applies to those not normally described as “working class”. So an actor is working class, so is a doctor, professor, musician, or artist. Even pop stars could be classed as working class. think how many complain of exploitation by their record companies. If we broaden the concept of who is working class to its LOGICAL conclusion, then we would realize that their are only two categories of persons in society, the “working” class (those who do something for which they are paid) and the parasite class, ( most notably shareholders whose “money works for them”) This is, admittedly, a very sketchy outline and there are many variations of the situation but if “posh” people are regarded as part of the “working class” then their will be an immediate increase in our numbers and therefore our power!! I am an artist but I still recognize that I need customers same as a fish and chip shop.