Before the privatisation of the energy sector, investment in energy was on a long term scale. This investment was initially paid with tax payers money.
When the industry was privatised, there was a reduction in tax payers money going into energy production.
The new private companies who bought the public assets originally owned by the tax payer have then used them to generate profits for them selves. All though there is a lot spin and regular use of the words entrepeneurs, what this selling off of government run services is being promoted to voters by the government, actually is, is not colossally different from a landlord buying a property that you own, and then letting you continue to live in that property whilst you pay rent to the landlord there after. Only you have no control of the cost of that rent!
Over recent years, the demands of the private companies have risen. At the same time, they have been unable or unwilling to invest enough of their profits in future development.
We now have a situation where the U.K.'s energy surplus has been reduced to just 4% when in the past, regulators had recommended a surplus of atleast 25%.
In the past few months, private energy companies have begun to threaten the public that if there are any restrictions on profits, then we can expect to see power cuts within the next year from now.
-This is a threat by the private energy companies, which if carried out, will mean suffering and ultimately loss of life. Suffering and a loss of life to people who have been paying their bills in the past years and providing the colossal wages and bonuses for the executives of these companies.
Even if we were to continue to ignore their greed and let them continue to charge the earth for their so called 'services',do you think they would begin to invest in new energy at the rate that is required?
The reason we are in this situation is because there has been a lack of investment in this industry since the day it was privatised.
Unless we take control of this industry, that is just not going to change.
The only answer is to re-nationalise.
To add to this case for renationalisation........
British Gas has shown a reduction in profits of 6% in the latest available accounts....But there are some facts which you need to bare in mind when analysing their figures. British Gas owner Centrica is both a whole sale supplier of energy as well as a retailer of energy. So British Gas profits will be reduced if for example the Centrica business supplying British Gas was to increase it's price as a wholesaler to British Gas. The point is, although British Gas profit is down 6% , the profits for the Centrica group which includes British Gas has only reduced by around 1.5% over the same period......a fall in profit from £2.74 Billion to £2.7 Billion.
Basically, their profits certainly don't show much justification for a 9% hike in energy charges. An increase which they had promised some time ago but had to reduce as so many customers were leaving for competing energy providers.
The final case for renationalising the energy sector is because it's a complete and utter government manufactured farce!
The U.K. public is being ripped off.
There are 33 companies listed under 'Which Switch' as U.K. energy providers!
-But really!....are they all energy providers?! Well of course they are not. Sinsbury's Energy is actually selling energy provided by British Gas. M&S, Airtricity and Atlantic all listed as suppliers but are selling electricity for SSE. It's a similar story as you go down the list of thirty three companies.
Needless to say, the public are paying executives and sales staff to all these non-providers of energy so they can pass it straight to the customer.
How does the customer benefit from this nonsense?
But going back to the rising energy prices which we are told by the executives of the energy firms and OFGEM, is down to the wholesale price of energy; How is it that British Gas can supply customers of Sainsbury's energy, and Sainsbury's Energy are still able to compete with British Gas?
In a genuine competitive market, this surely would not be possible!
Couldn't really avoid this bit of additional nonsense......EBICO........is one of the listed suppliers......"The only 'not for profit' energy company."
It probably gets lots of customers because of this statement. It may well be true, that it doesn't make a profit. But then it doesn't 'make' energy either. It sells energy provided by SSE. Who you can be sure are making a profit from the price that EBICO is paying them.
My final case for renationalising energy is that in 2007, British Gas was almost sold to GAZPROM, Russia's biggest gas company. As a government, you just don't know how good your relationship, with another nations government will be in the future. How could that affect energy that is being provided by a business owned by a nation you may have formed some differences with?
All pictures from "Bin British Gas" Protest, run by Fuel Poverty Action.
Westminster, London. May 12 2014.
Protest against poverty caused by rising energy prices, fracking and the lack of investment into renewable energy.
- For a more in depth look into privatisation see other posts in X-ECONOMICS by putting PRIVATISATION in search box at top left!
When the industry was privatised, there was a reduction in tax payers money going into energy production.
The new private companies who bought the public assets originally owned by the tax payer have then used them to generate profits for them selves. All though there is a lot spin and regular use of the words entrepeneurs, what this selling off of government run services is being promoted to voters by the government, actually is, is not colossally different from a landlord buying a property that you own, and then letting you continue to live in that property whilst you pay rent to the landlord there after. Only you have no control of the cost of that rent!
Over recent years, the demands of the private companies have risen. At the same time, they have been unable or unwilling to invest enough of their profits in future development.
We now have a situation where the U.K.'s energy surplus has been reduced to just 4% when in the past, regulators had recommended a surplus of atleast 25%.
In the past few months, private energy companies have begun to threaten the public that if there are any restrictions on profits, then we can expect to see power cuts within the next year from now.
-This is a threat by the private energy companies, which if carried out, will mean suffering and ultimately loss of life. Suffering and a loss of life to people who have been paying their bills in the past years and providing the colossal wages and bonuses for the executives of these companies.
Even if we were to continue to ignore their greed and let them continue to charge the earth for their so called 'services',do you think they would begin to invest in new energy at the rate that is required?
The reason we are in this situation is because there has been a lack of investment in this industry since the day it was privatised.
 |
| BIN BRITISH GAS PROTEST 12 MAY 2014 |
The only answer is to re-nationalise.
To add to this case for renationalisation........
British Gas has shown a reduction in profits of 6% in the latest available accounts....But there are some facts which you need to bare in mind when analysing their figures. British Gas owner Centrica is both a whole sale supplier of energy as well as a retailer of energy. So British Gas profits will be reduced if for example the Centrica business supplying British Gas was to increase it's price as a wholesaler to British Gas. The point is, although British Gas profit is down 6% , the profits for the Centrica group which includes British Gas has only reduced by around 1.5% over the same period......a fall in profit from £2.74 Billion to £2.7 Billion.
Basically, their profits certainly don't show much justification for a 9% hike in energy charges. An increase which they had promised some time ago but had to reduce as so many customers were leaving for competing energy providers.
The final case for renationalising the energy sector is because it's a complete and utter government manufactured farce!
The U.K. public is being ripped off.
There are 33 companies listed under 'Which Switch' as U.K. energy providers!
 |
Needless to say, the public are paying executives and sales staff to all these non-providers of energy so they can pass it straight to the customer.
How does the customer benefit from this nonsense?
But going back to the rising energy prices which we are told by the executives of the energy firms and OFGEM, is down to the wholesale price of energy; How is it that British Gas can supply customers of Sainsbury's energy, and Sainsbury's Energy are still able to compete with British Gas?
In a genuine competitive market, this surely would not be possible!
Couldn't really avoid this bit of additional nonsense......EBICO........is one of the listed suppliers......"The only 'not for profit' energy company."
It probably gets lots of customers because of this statement. It may well be true, that it doesn't make a profit. But then it doesn't 'make' energy either. It sells energy provided by SSE. Who you can be sure are making a profit from the price that EBICO is paying them.
My final case for renationalising energy is that in 2007, British Gas was almost sold to GAZPROM, Russia's biggest gas company. As a government, you just don't know how good your relationship, with another nations government will be in the future. How could that affect energy that is being provided by a business owned by a nation you may have formed some differences with? All pictures from "Bin British Gas" Protest, run by Fuel Poverty Action.
Westminster, London. May 12 2014.
Protest against poverty caused by rising energy prices, fracking and the lack of investment into renewable energy.
- For a more in depth look into privatisation see other posts in X-ECONOMICS by putting PRIVATISATION in search box at top left!
No comments:
Post a Comment