Energy utilities

Perhaps when it comes down to it, it is me and I have missed all the news in relation to oil, energy, gas and electricity. Maybe my half asleep id has missed the huge onrush of ceo's from energy companies parading themselves before the nations press, spouting their concern for the hard-pressed consumer by cutting gas prices by 35-50% and electricity prices by 19-24% . And with immediate effect. I must have overlooked their concerned visages earnestly peering whilst their mouths trot through the latest prepared speech, that it's about either helping or investing; forgetting there are many out there living on a day by day basis, who find themselves having to choose between lighting, heating, or eating.

You can just imagine their voices crescendoing on, “with oil now more than half it's $146 value a year ago peak,” yes it even touched $68.57 for US light crude before closing slightly up. “We feel the time is right that our consumers are given a break and we're glad to announce a 5% cut in gas and 2% cut in electricity prices,” and just as people decide on how to react to such a statement, it's finished by, “which will take place on January 5th 2009.”

Has anyone heard or seen anything like that? Or is the deafening rush of silence, from the absent, off the field utility companies, the only answer needed?

We would like to believe that a brand new bunch of fat cat ceo's will be walking that gold plank of parting, but I somehow feel the public mob mentality for such a public drubbing has, with simmering largesse, snuffed itself out.

What we do have however, is ed miliband announcing that the government will increase their carbon reductions targets from 50% to 80% by 2050 - 42 years time.

If a day's a long time in politics, then 42 years must equate to the universal equivalent of four big bangs. A very long period of time where even the ideology of those holding the power stick will probably have been radically changed by unforeseen events and circumstances.

If they attempt to reach targets by slow-creep taxation, it will be those on the bottom and in the middle who will take the greatest hit – especially since two big polluting sectors (aviation and maritime), look like been strangely absent from the proceedings.

Alternatively the government could consider bringing in effective legislation ensuring that new builds or repairs to existing builds that require planning applications, incorporate some element of renewable's or energy efficiency within there design. Imagine, a whole new manufacturing sector could be opened up, then sold off before the next popping bubble. Not only for the manufacturing of wafer thin etaic cells, but new inspectors – just like the tax collectors of old – will incorporate the curbing of excessive emissions, clamping down with powers to immediately close a business down, to giving certificates to those households and businesses who effectively meet the required standards.

So government might bring its full weight down to bear on the energy companies, under the possibility of talks about legislation “if they don't play ball!” What the bloody heck does that mean? They need to remove their noses from the utilities brown stuff and work to ensure that those unfortunates stuck on prepayment meters don't pay an extra £200 above normal rates. When you consider that prepayment users are actually crediting companies for their usage as opposed to those on monthly or quarterly plans who pay in arrears, then no wonder they find the pp'ers a useful set of cows to milk and not to do anything to truly upset the cart.

A while ago marie-antoinette was made infamous for saying “let them eat cake!” This current government will be famous for so many things, but one of the worst will be their seeming attitude of, more money for heating? Don't they know its global warming out there?

The unfolding saga will probably come to nought but a grubby watery end.  As in 38 years time panic will be the order of the day, with the government attempting to ram-raid the law into enactment – to reach the target, or quietly bury it under the table.  Let's just hope that in 42 years time that table isn't floating off, somewhere down the thames!

Loss labour

At the next round of world trade meetings (or letting the big multi-nationals get away with it), it will be a new conservative uk government putting it's social friendly policies with a new democratic/republican led government in the us.

But at the moment here in the uk, with all the nonsense wafting in the air of windfall taxes and tinkering about the edges with a stamp duty holiday. People are suffering.

If this winter is really bad, then like the summer of a couple of years ago, the weeks will go by and reports of people dying will flood onto the media networks.

Price increases for energy companies in the home of one of the big energy companies, is limited to 5% per year for its 28m customers. Yes it's edf and that has happened in france.  But, give or take a kw or barrel, how can the french president insist on such a small price increase been forced onto french consumers, whilst the uk government bends over backwards; seemingly just waving them through?

In the uk it, along with other energy companies, has been able to get away (like good cowboys laughing off into the sunset) with increasing prices by over 22% year on year, claiming wholesale price increases, whilst making billions in profit.  Perhaps my knowledge of the energy industry is on par with that of a gnat and i'm talking nothing but hot air through my other hole.

I'm sure stern words have been flying from ministries to companys and back again.  But why in the land of 'easily hire, easily fire', (to make us more competitive, which is why the oecd says the uk could be the only developed country to hit recession), is there such a disparity in energy pricing and pricing increases compared to other members of the european community?

Perhaps big companies are now fully aware they can gouge the uk consumer, without too much interference from a hapless regulator or an inept government.

If you spend more than 10% on fuel, you are classed as been fuel poor. For the many who are spending upto 25% if not more, they must be the new fuelslaves.  Doing everything possible to ensure the lights and gas remain on, even to the extent of cutting back on food and other basics.  The fates help them if it turns out to be harsh winter as, on current form, nothing useful looks like it will be emanating from this government, in time to stave off the worst.

The government is quick to say how much help it is providing to those over 70.  Which is excellent.  But what about those who are under that age, who don't get all the handouts - as they're not eligible to under the twisted, warped and convoluted regulations that pass for means-testing?

The dearth of useful information given by ministers is telling, when they make an appearance on television, radio or in the press.  That combined with their level of condescension, is simply a sign of a government fully out of touch with the true feelings of many of its citizens.

The way things are currently going, we can just imagine after the winter, with 30% of the population spending 40% of any income they have, just to try and keep warm. 

Over the coming weeks, the next good government thought, will be to trawl through historical archives to see how (when the last economic disaster was experienced) we, as a plucky nation, managed to pull through.

And this, no doubt, is probably one of the bright ideas they will eventually come up with....